EURAU, a new euro stablecoin venture backed by Deutsche Bank’s DWS, Flow Traders and Mike Novogratz’s Galaxy, has debuted on the Ethereum blockchain.
AllUnity — the company backed and formed by the three firms — announced the launch of EURAU on Thursday, making the regulated stablecoin publicly available on the last day of July.
The new stablecoin is regulated by the German Federal Financial Supervisory Authority (BaFin) and is compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA).
EURAU will initially be available on the Ethereum blockchain as an ERC-20 token, with plans to expand to additional networks later in 2025, the announcement states.
Bullish Europe is the first exchange to list EURAU
Bullish Europe, a cryptocurrency trading platform and custodian regulated by BaFin, will be the first exchange to offer EURAU for trading.
After receiving four licenses from BaFin in December 2024, Bullish is yet to receive a MiCA license. Headquartered in Frankfurt, Bullish Europe is positioned for EU-wide expansion under the MiCA framework, the announcement added.
The launch of EURAU also involves key ecosystem leaders, including major crypto custody company BitGo.
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Other ecosystem partners at launch include Metzler Bank, Tradevest Group, DLT Finance, Fireblocks, V-Bank, 21X, Hacken, Softstack and OAK Security.
Euro stablecoins make up only 0.2% of the market
EURAU’s launch comes as euro-denominated stablecoins represent around 0.2% of the $272.9 billion global stablecoin market, according to CoinGecko.
With a total capitalization estimated from $484 million to $587 million, euro stablecoins pale in comparison to their US dollar counterparts, which dominate the space with $268.6 billion in market cap.
With Tether’s USDt (USDT) stablecoin alone having a $163.7 billion market cap, the massive dominance of US dollar stablecoins has been a major concern among European financial authorities over the lack of euro-based alternatives.
Euro stablecoins surge 60% since late 2024
While euro-denominated stablecoins remain small in comparison to their US rivals, they have experienced significant growth in recent months.
According to data from Crypto.com, the market capitalization of euro stablecoins has increased by nearly 60% since December 2024, rising from $367 million to approximately $587 million.
Despite the positive growth, some European officials have admitted that the adoption of euro-pegged stablecoins remains limited despite frameworks like MiCA aimed at promoting their use.
On Monday, European Central Bank adviser Jürgen Schaaf called for global coordination in regulating stablecoins to prevent the US dollar dominance, highlighting certain disparities between regulatory approaches in the US and the EU.
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