“FRANKFURT. On July 31, the first euro-based stablecoin was issued. This stablecoin can now be traded and used by companies and banks for cross-border payments and for the purchase of tokenized securities on the blockchain.
Stablecoins are cryptocurrencies, i.e., based on cryptographic processes and exist exclusively electronically as a data record.
Compared to the more well-known Bitcoin and Ether, they are intended to fluctuate less in value by being firmly pegged to an established fiat currency such as the dollar.
At the beginning of July, the German financial regulator Bafin granted Allunity, a joint venture between Deutsche Bank's fund management company DWS and the fintechs Flow Traders and Galaxy, its first e-money license. Now Allunity has issued the first euro-pegged stablecoin in Germany. Allunity used the Ethereum blockchain for this purpose. The new stablecoin, with the abbreviation "EURAU" will expand to other blockchain networks over the course of the year and become compatible with a variety of Ethereum-based wallets and protocols, Allunity announced at its market launch on July 31.
Bullish Europe, a BaFin-licensed digital asset dealer and custodian, will be the first to offer EURAU trading.
Initially, two currency pairs will be traded: Allunity's stablecoin against Bitcoin and the euro-denominated stablecoin of the US company Circle, which is licensed in France. According to Allunity, institutional clients can also purchase EURAU directly through the company. When asked for clarification, Allunity explained that it primarily acts as an issuer. The institutional clients to whom it sells the stablecoin include market makers and brokers, but also traditional corporate clients who use EURAU for payments. Anyone wishing to purchase the stablecoin through Allunity must undergo an identity verification during onboarding to prevent money laundering. (KYC, Know Your Customer).
Market makers and brokers also distribute the stablecoin to the market, so that private individuals can also acquire it on the "secondary market" and use it for payments. This does not require a direct customer relationship with Allunity, it is stated.
In addition to this interoperability with other blockchain networks, trust in the collateral is considered a crucial criterion for the success of Germany's first stablecoin. For EURAU to establish itself as a store of value, it is necessary for investors to believe that its peg to the euro will be maintained. The reserves, which Allunity promises to provide regular updates on, are intended to serve this purpose. Furthermore, under the leadership of Germany's largest fund manager, DWS, Allunity has gathered several well-known partners, including the long-established Metzler Bank, which serves as a reserve partner. These reserves are intended to be used in case of doubt to keep the EURAU value stable in euros.” [1]
1. Der erste Stablecoin aus Deutschland ist da: Neues E-Geld ist an den Euro gekoppelt. Frankfurter Allgemeine Zeitung; Frankfurt. 01 Aug 2025: 29.
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