In a milestone for institutional crypto adoption, AllUnity, a joint venture backed by Deutsche Bank’s asset manager DWS, Galaxy Digital, and Flow Traders, has received approval from BaFin to launch a regulated euro stablecoin. The token will be issued under the EU’s MiCA regulation, making it one of the first MiCA-compliant stablecoins authorized by a Tier-1 financial regulator in Europe. The AllUnity stablecoin is expected to set a benchmark for euro-denominated digital assets issued within the Eurozone with full regulatory oversight.
A Timeline: How AllUnity Came to Life
2023 – Early Vision and Strategic Planning
Reports emerged in 2023 that DWS, Deutsche Bank’s investment arm, was exploring the tokenized finance sector. Around mid-year, DWS confirmed it was working with digital asset firm Galaxy Digital on a new joint venture to explore a regulated euro stablecoin. Flow Traders, a Dutch market maker with crypto expertise, joined shortly after.
The venture, later named AllUnity, set out to bridge traditional finance and blockchain. Its goal was to create a stablecoin trusted by banks, asset managers, and regulated institutions.
2024 – Laying Down Compliance and Infrastructure
In 2024, AllUnity built its technology and compliance stack, which included custody, risk, and issuance systems. The venture aligned its structure with the Markets in Crypto-Assets (MiCA) regulation.
AllUnity received its MiCA stablecoin license following a full regulatory review. The assessment confirmed that its framework met the EU’s highest compliance standards. By year-end, internal audits were complete, and consequently, the firm submitted its filing to BaFin.
2025 – Regulatory Approval Achieved
On July 2, 2025, BaFin finally granted formal approval for AllUnity to issue its euro stablecoin. The token is expected to launch by late 2025. It will serve wholesale crypto settlement, institutional trading, and on-chain finance use cases rather than retail transactions.
What Makes AllUnity’s Stablecoin Stand Out?
AllUnity’s euro stablecoin differs from others in several ways:
- Regulated in Germany: This is the first euro stablecoin explicitly approved by BaFin.
- Institutional Backing: With Deutsche Bank crypto ambitions, Galaxy Digital’s infrastructure, and Flow Traders’ liquidity, AllUnity combines traditional and digital finance expertise.
- Purpose-Built for Institutions: Unlike retail-focused stablecoins, AllUnity targets tokenized settlement, cross-border payments, and regulated asset transfers.
- Full MiCA Compliance: The stablecoin meets all criteria laid out in the MiCA regulation, including transparency and risk controls.
>>> Read more: Germany Leads Crypto Regulation in the EU
Implications for the European Crypto Market
AllUnity’s BaFin-approved euro stablecoin could reshape how Europe approaches regulated digital assets. After all, it proves that MiCA-compliant tokens can come from banks, not just crypto startups.
The move may push competitors to pursue their own stablecoin approval in Germany or other MiCA-compliant jurisdictions. These include countries like France, Finland, or the Netherlands. Analysts believe AllUnity may anchor a wider euro-denominated tokenized finance ecosystem, especially if it connects with on-chain financial tools or EVM-compatible chains.
Market Reception and Road Ahead
Industry experts see this as a turning point. “Institutional investors have long demanded a regulated euro stablecoin with full legal clarity,” said a fintech partner in Frankfurt. “With Deutsche Bank involved, this isn’t just regulatory—this is strategic.”
The focus on wholesale crypto settlement hints at broader goals. These could include CBDC interoperability or even interbank blockchain clearing, if supporting infrastructure evolves.
>>> Read more: Deutsche Bank Stablecoin Plans Linked to Ant Deal
AllUnity’s BaFin approval is more than just a regulatory milestone. It marks a shift in how institutional crypto is developing in Europe. The venture blends bank-level trust with crypto innovation.
By launching the first regulated euro stablecoin in Germany with full BaFin approval, AllUnity sets a new benchmark. It could define the future of euro-backed digital assets in MiCA’s framework.
Readers’ frequently asked questions
Who will be able to use the AllUnity stablecoin?
The AllUnity stablecoin is designed for institutional users only. It will serve regulated financial entities such as banks, asset managers, and settlement platforms, not retail consumers.
What does BaFin’s approval mean under the MiCA regulation?
BaFin’s approval confirms that the stablecoin meets the EU’s MiCA regulatory framework for reserve-backed digital assets. It also establishes a precedent for issuing euro-denominated stablecoins under strict compliance conditions.
How will the AllUnity stablecoin be used in practice?
It will be integrated into wholesale financial markets, supporting real-time settlement of tokenized assets, cross-border payments, and blockchain-based clearing between regulated institutions.
What Is In It For You? Action items you might want to consider
Monitor AllUnity’s stablecoin integration with institutional settlement platforms
If you work in finance or infrastructure, track announcements related to AllUnity’s rollout. Pay special attention to integrations with clearinghouses, custodians, and tokenized asset platforms across the EU.
Evaluate MiCA-aligned opportunities in euro-denominated stablecoins
With BaFin’s approval setting a precedent, similar regulatory paths may open in other EU jurisdictions. Fintech startups and asset managers should assess whether launching or partnering with MiCA-compliant stablecoin issuers aligns with their regional strategy.
Analyze the impact on cross-border payments and tokenized asset flows
The arrival of a regulated euro stablecoin could reshape wholesale settlement and reduce friction in European finance. Corporate treasurers and digital asset managers should model how this affects their liquidity planning, cross-border payment rails, or on-chain fund transfers.
