A new euro-denominated stablecoin, EURAU, has launched on the Ethereum blockchain, backed by Deutsche Bank's DWS, Flow Traders, and Mike Novogratz's Galaxy. The regulated token is issued by AllUnity and complies with Germany's BaFin and the EU's MiCA rules.

Bullish Europe, a BaFin-regulated crypto exchange based in Frankfurt, will be the first to list EURAU. The exchange has secured four BaFin licences and is preparing for expansion across the EU under MiCA's framework.

Key partners supporting EURAU's launch include crypto custodian BitGo, Metzler Bank, and Fireblocks.

Euro stablecoins currently make up just 0.2% of the$273 billion global stablecoin market but have seen strong growth, increasing by nearly 60% since December 2024. Despite growth, European regulators stay cautious because US dollar stablecoins like Tether's USDt dominate.

European Central Bank adviser Jurgen Schaaf has emphasised the need for international regulatory coordination to balance stablecoin markets and reduce reliance on the dollar.