AllUnity, a joint stablecoin enterprise by asset supervisor DWS and banking big Deutsche Financial institution, obtained a license from the German Federal Monetary Supervisory Authority (BaFin), based on a Wednesday announcement.
BaFin has granted an E-Cash Establishment (EMI) license to AllUnity. With the license, the corporate plans to concern a regulated and BaFin-licensed euro-pegged stablecoin, EURAU, in compliance with the Markets in Crypto-Assets Regulation (MiCA) framework.
AllUnity mentioned EURAU will characteristic institutional-grade proof-of-reserves and monetary reporting.
The initiative, which additionally entails US-based Galaxy Digital, goals to offer euro-denominated digital property that combine seamlessly into the workflows of regulated establishments, fintech platforms and enterprise treasuries. Amsterdam-based Movement Merchants will function the undertaking’s liquidity supplier.
Associated: 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 within the world stablecoin race, following the complete implementation of MiCA on Dec. 30, 2024.
The event is partially attributable to the truth that the worldwide stablecoin market chief Tether has so far declined to comply with the MiCA framework. This led to USDt (USDT) being delisted from Binance, in addition to competitors such as Kraken and Coinbase, for customers within the European Financial Space.
Associated: MiCA-compliant stablecoins dominate European market — Kaiko
Stablecoins race for MiCA compliance
Earlier this week, Paxos introduced the launch of its MiCA-compliant Global Dollar (USDG) stablecoin in the EU.
Mid-April studies revealed that the market cap of Circle’s MiCA-compliant stablecoin Euro Coin (EURC) was growing quickly.
Circle’s stablecoins doubtless benefited from the implementation of MiCA, with Euro Coin and USDC (USDC) reaping the rewards of its regulatory-friendly strategy. The corporate’s stablecoins are the top euro and US dollar-pegged stablecoins that comply with MiCA.
Nonetheless, CoinMarketCap data reveals that USDt stays the undisputed market chief, with a market cap of beneath $158 billion. USDt has a big lead over the second-largest stablecoin, USDC, with a market cap of lower than $62 billion.
Journal: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
