Deutsche Bank and Galaxy Digital have recently announced the launch of EURAU, Europe’s first regulated euro-backed stablecoin, which could significantly impact the stablecoin market.
Partnership of Deutsche Bank and Galaxy Digital
Deutsche Bank and Galaxy Digital have partnered to launch EURAU, the first regulated euro-backed stablecoin in Germany. The project has received approval from BaFin and will be introduced on the Bullish exchange. AllUnity serves as the issuer, emphasizing the importance of regulatory compliance.
Implementation and Compliance
EURAU complies with EU's MiCA regulation, indicative of higher standards for regulatory oversight. The cryptocurrency will be launched on the Bullish platform and the Ethereum blockchain, increasing its accessibility and interoperability.
Market Impact and Prospects
The launch of EURAU is anticipated to be a significant event for market liquidity and euro pair trading. Its full collateralization and reserves held in European banks enhance the reliability of the euro peg. "EURAU is fully collateralized by reserves held in European banks, ensuring a transparent and stable peg to the euro," states the official AllUnity announcement.
The launch of EURAU marks an important step towards greater regulation among stablecoins in Europe. It is expected to influence liquidity and institutional trading volumes in the crypto market.
