AllUnity, a joint stablecoin venture by asset manager DWS and banking giant Deutsche Bank, received a license from the German Federal Financial Supervisory Authority (BaFin), according to a Wednesday announcement.
BaFin has granted an E-Money Institution (EMI) license to AllUnity. With the license, the company plans to issue a regulated and BaFin-licensed euro-pegged stablecoin, EURAU, in compliance with the Markets in Crypto-Assets Regulation (MiCA) framework.
AllUnity said EURAU will feature institutional-grade proof-of-reserves and financial reporting.
The initiative, which also involves US-based Galaxy Digital, aims to provide euro-denominated digital assets that integrate seamlessly into the workflows of regulated institutions, fintech platforms and enterprise treasuries. Amsterdam-based Flow Traders will serve as the project’s liquidity provider.
Related: ECB exec renews push for digital euro to counter US stablecoin growth
The stablecoin battle for Europe
The announcement comes as Europe emerges as a key battleground in the global stablecoin race, following the full implementation of MiCA on Dec. 30, 2024.
The development is partially due to the fact that the worldwide stablecoin market leader Tether has so far declined to comply with the MiCA framework. This led to USDt (USDT) being delisted from Binance, as well as competitors such as Kraken and Coinbase, for users in the European Economic Area.
Related: MiCA-compliant stablecoins dominate European market — Kaiko
Stablecoins race for MiCA compliance
Earlier this week, Paxos announced the launch of its MiCA-compliant Global Dollar (USDG) stablecoin in the EU.
Mid-April reports revealed that the market cap of Circle’s MiCA-compliant stablecoin Euro Coin (EURC) was growing quickly.
Circle’s stablecoins likely benefited from the implementation of MiCA, with Euro Coin and USDC (USDC) reaping the rewards of its regulatory-friendly approach. The company’s stablecoins are the top euro and US dollar-pegged stablecoins that comply with MiCA.
Still, CoinMarketCap data shows that USDt remains the undisputed market leader, with a market cap of under $158 billion. USDt has a significant lead over the second-largest stablecoin, USDC, with a market cap of less than $62 billion.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
