AllUnity, a joint venture between DWS and Deutsche Bank, has received a license from the German Federal Financial Supervisory Authority (BaFin) to create a euro stablecoin.
BaFin License
BaFin granted AllUnity an Electronic Money Institution (EMI) license. This license will allow the company to issue a regulated euro-pegged stablecoin, EURAU, in compliance with the Markets in Crypto-Assets Regulation (MiCA).
Plans for EURAU Launch
AllUnity plans to develop EURAU utilizing an institutional-grade proof-of-reserves model, ensuring transparency and reliability for the new stablecoin. The project aims to integrate seamlessly with financial institutions and fintech platforms.
Competition in the Stablecoin Market
This announcement comes amid an active race in the European stablecoin market, which is rapidly evolving with the implementation of MiCA. Some competitors, such as Tether, have yet to comply with MiCA requirements, potentially creating opportunities for new entrants like AllUnity.
By obtaining a license from BaFin, AllUnity marks a new step towards creating regulated stablecoins in Europe, while competition in the market becomes increasingly fierce.
