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German banking giant Deutsche Bank has initiated efforts to launch a Euro Index stablecoin! Here are the details.
Deutsche Bank's investment management arm DWS, together with digital asset company Galaxy and market maker Flow Traders, has established a joint venture AllUnity, which is preparing to launch a MiCA-compliant euro stablecoin after receiving an electronic money institution license (EMI) from the German financial regulator BaFin.
Deutsche Bank's DWS Unit Launches Euro Stablecoin Compliant with German Regulations in Partnership with Galaxy and Flow Traders
The newly issued digital asset EURAU will be 100% collateralized and will provide institutional-level transparency. According to AllUnity's statement, this transparency will be ensured through regular proof of reserves and legal reporting.
EURAU aims to provide seamless integration for cross-border payments 24/7 across Europe and beyond, regulated financial institutions, fintechs, corporate treasury management (ERP) systems, and companies.
This initiative joins the ranks of euro-indexed stablecoin projects following the entry into force of the European Union's Crypto Asset Markets Regulation (MiCA).
In addition to EURAU, Circle's EURC, Société Générale's EURCV, and among dollar-based stablecoins, Société Générale's USDCV and Robinhood-supported Global Dollar (USDG) are also licensed and present in the market under MiCA.
AllUnity CEO Alexander Höptner emphasized the importance of the obtained EMI license, stating that "This license is not only a hurdle overcome in regulation but also the foundation of a secure, transparent, and compliant digital payment infrastructure for European and global markets."
AllUnity's stablecoin initiative aims to provide a compliant, regulatory-friendly, and institutional-use-friendly alternative that is compatible with decentralized finance in Europe's digital payment infrastructure.