Galaxy Digital-Backed AllUnity Scores MiCA License – A Game Changer for Stablecoin Expansion

AllUnity just cracked the regulatory code. Backed by Mike Novogratz's Galaxy Digital, the firm secured its Markets in Crypto-Assets (MiCA) license—paving the way for euro-pegged stablecoin dominance in the EU.

Why it matters: While traditional banks still treat crypto like a suspicious uncle at Thanksgiving, MiCA compliance gives AllUnity a first-mover advantage in the $150B stablecoin market. Expect institutional inflows as regulatory fog clears.

The cynical take: Watch legacy finance suddenly 'discover' stablecoin utility now that suits can check a compliance box. Innovators built this—bureaucrats just handed out the hall passes.

AllUnity, a joint venture backed by Galaxy Digital, has received an E-Money Institution (EMI) license from BaFin.

This license from the German Federal Financial Supervisory Authority (BaFin) offers AllUnity a path for stablecoin growth.

Galaxy Digital-Backed AllUnity to Launch a Euro-Backed Stablecoin

Galaxy Digital CEO Mike Novogratz gave the announcement in an X post. The BaFin license WOULD allow AllUnity to issue a fully regulated Euro Stablecoin, EURAU.

This will be the first BaFin-regulated stablecoin. It complies with the EU Markets in Crypto-Assets Regulation (MiCAR) framework.

It is designed for 24/7 instant cross-border settlements. Upon release, EURAU will be 100% collateralized.

Also, it is expected to deliver institutional-grade transparency through proof-of-reserves and regulatory reporting.

EURAU is built for regulated financial institutions. Fintechs, Treasuries (ERP), and enterprise clients across Europe can use EURAU to perform seamless transactions following key integrations.

Therefore, the stablecoin addresses the critical need for liquidity in the European digital economy.

The EMI license allows the fintech startup to set a new standard for utility in regulated environments. This is in addition to accelerating the evolution of the cross-border payments ecosystem.

AllUnity partnered with leading industry giants, including DWS, FLOW Traders, and Galaxy, for the launch.

The Mike Novogratz-backed firm bridges traditional finance and digital assets with its institutional-grade infrastructure and real-time settlement.

Alexander Höptner, CEO of AllUnity, wrote:

“Securing the EMI license from BaFin is a monumental achievement for AllUnity and a testament to our dedication to regulatory excellence. We are immensely proud to be at the forefront of this innovation, meeting the highest standards of regulation and trust with the support of our esteemed partners.”

EURAU Creates a Gateway to Europe

The EMI license comes at a crucial time when stablecoins are being increasingly considered reliable to restore financial autonomy in the EU.

Experts believe that regulated Euro-backed stablecoins represent a foundational block for the future of the European financial and real economy.

They are increasingly gaining recognition in Europe for several reasons.

Notably, Euro stablecoins offer a stable alternative for transactions and investments, protecting against fluctuations in the US dollar.

Additionally, the MiCA regulation provides a robust framework. This regulation requires 1:1 reserve backing in EU-regulated banks, ensuring transparency and accountability.

It, therefore, encourages the adoption of euro-backed stablecoins.

Financial players, including Paxos and Deutsche Bank, are entering the European market. Their entry signaled an increasing level of trust from institutional players.

Paxos recently introduced the Global-Dollar (USDG) in the EU, compliant with the MiCA regulations.

In May, Ripple’s XRP Ledger (XRPL) added EURØP as its first euro-backed stablecoin. Issued by Schuman Financial, EURØP is fully backed 1:1 by euro held in European banks.

Stablecoin Regulation in the EU Vs the U.S.

The regulation of stablecoins has a different approach in Europe and the United States. It is shaped by differing legal frameworks, priorities, and market dynamics.

MiCA has influenced growth in euro-backed stablecoins like EURC, EURS, and EURØP. In contrast, the US lacks a comprehensive federal regulation.

However, US senators recently voted in favor of a stablecoin bill, known as the GENIUS Act.

This bipartisan bill was co-sponsored by Senators Kirsten Gillibrand and Bill Hagerty. It aims to establish the first federal regulatory framework for stablecoins in the US.

On June 17, the U.S. Senate passed the GENIUS Act with a 68–30 vote. The legislation has now moved to the House for approval.

If successfully approved, it will MOVE to the desk of President Donald Trump.

Considering the President’s disposition towards the industry, this Bill may gain expedited consent should it reach the executive branch.