European stablecoin issuer AllUnity launches USD stablecoin USDAU

What happened

AllUnity launched USDAU, a token pegged to the US dollar, on Sept. 30. It is the company's fourth fiat-backed stablecoin and extends a lineup regulated under the European Union's Markets in Crypto-Assets framework. The issuer says the token is fully backed by US dollar reserves and can be redeemed 1:1 at par, with issuance handled by its BaFin-licensed electronic money institution under MiCA.

USDAU is available on Ethereum, Solana, Base, Tempo, Arc and Polygon at launch. AllUnity said more networks are expected to be added later this year. Institutional clients that finish onboarding can mint and redeem the token without fees through the company's Business Mint Account, and eligible clients can mint or redeem at par through that account.

The launch came with Instant FX, which lets businesses move between supported currencies using AllUnity's stablecoin infrastructure. Banking Circle will support USDAU reserves and transaction banking, while Flowdesk will provide liquidity for the stablecoin.

Why it matters

Dollar-pegged tokens account for more than 99% of the roughly $291 billion global stablecoin market by capitalisation, according to CoinGecko. The European Central Bank warned in June that wider use in European tokenised finance could deepen dependence on the dollar and weaken the euro's role.

For AllUnity, the dollar token gives institutional clients access to four fiat currencies through one regulated issuer. CEO Alexander Höptner said: "We are extending our platform into a globally significant trade and settlement currency and laying the foundation for a truly multi-currency digital money network."

CFO Simon Seiter said the company is applying the round the clock settlement model used by stablecoins to foreign exchange.

What the data shows

• CoinGecko puts EURAU's market capitalisation at roughly $400,000 and CHFAU's at about $45 million, well below the size of the dollar market USDAU now targets.
• USDAU is live across six blockchain networks at launch, and more networks are expected later this year.

Background

• AllUnity already issues euro-backed EURAU, Swiss franc-backed CHFAU and Swedish krona-backed SEKAU, the last of which arrived earlier this year.
• SEKAU was introduced in June as a 1:1 backed MiCA e money token for institutional settlement, treasury operations and cross border payments, and went live on Ethereum, Solana, Base, Tempo and Polygon.

What is still unclear

• Cointelegraph asked AllUnity about the role of European issuers in the dollar stablecoin market and about Europe's reliance on dollar-denominated tokens, but the company had not responded by publication.

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