What is USDAU? AllUnity launches MiCA compliant dollar stablecoin

AllUnity has launched its US dollar backed USDAU stablecoin across six blockchain networks as the regulated European issuer expands its business payment infrastructure into dollar settlement and stablecoin based foreign exchange.

Summary

• AllUnity has launched USDAU, a US dollar backed stablecoin available across six blockchain networks under the EU’s MiCA framework.
• USDAU is backed by US dollar reserves and can be minted or redeemed at par by eligible institutional clients through AllUnity’s Business Mint Account.
• AllUnity has paired the launch with Instant FX, allowing businesses to move between supported currencies using its stablecoin infrastructure.
• Banking Circle will support USDAU reserves and transaction banking, while Flowdesk will provide liquidity for the stablecoin.

AllUnity said on Sept. 30 that USDAU is fully backed by US dollar reserves and can be redeemed 1:1 at par, with issuance handled by the company’s BaFin licensed electronic money institution under the European Union’s Markets in Crypto Assets Regulation.

The stablecoin is available on Ethereum, Solana, Base, Tempo, Arc and Polygon at launch. More blockchain networks are expected to be added later this year.

Businesses can access USDAU through AllUnity’s Business Mint Account, while supported exchanges and ecosystem partners will provide other routes into the stablecoin. Institutional clients that have completed the company’s onboarding process can mint and redeem USDAU without fees through the account.

USDAU gives AllUnity a dollar stablecoin under MiCA

USDAU takes AllUnity beyond the European currencies that have formed its stablecoin business so far.

The Frankfurt based company already issues stablecoins backed by the euro, Swiss franc and Swedish krona. Its dollar token now gives institutional clients access to four fiat currencies through the same regulated issuer.

AllUnity CEO Alexander Höptner described USDAU as an expansion into a currency widely used for international trade and settlement.

“Adding USDAU is a major expansion of what AllUnity is building,” 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.”

AllUnity’s latest launch follows the rollout of its Swedish krona backed token earlier this year. As crypto.news reported in June, SEKAU was introduced as a 1:1 backed MiCA e money token for institutional settlement, treasury operations and cross border payments.

SEKAU initially went live on Ethereum, Solana, Base, Tempo and Polygon, giving AllUnity an existing multi chain setup that USDAU now largely follows.

The company’s other tokens include euro backed EURAU and Swiss franc backed CHFAU. Its addition of a dollar denominated asset brings the same issuance model to a stablecoin market where US dollar tokens account for most of the circulating supply.

Business Mint Account adds stablecoin based FX

Alongside USDAU, AllUnity has expanded its Business Mint Account with Instant FX, allowing institutional users to move between supported currencies using its stablecoins.

The service is designed so businesses do not need separate payment infrastructure for each currency corridor. Clients can mint supported currencies and move value between them through AllUnity’s stablecoin rails within the same business account.

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

“Stablecoins have already demonstrated that value can move 24/7 with near-instant settlement,” Seiter said. “We are now bringing that principle to FX and making it operationally simpler: one business account, multiple currencies and the ability to convert, move and redeem value within a single platform.”

Foreign exchange liquidity has become part of the stablecoin payment discussion as businesses use tokens for transactions involving multiple fiat currencies. TransFi CEO Raj Kamal said earlier in September that more than 70% of conversions into dollar stablecoins begin in another currency.

Kamal said round the clock stablecoin activity can leave businesses dealing with thinner FX liquidity outside normal trading hours, while fragmentation across currencies, issuers and blockchain networks can complicate conversions.

Local currency settlement presents a separate hurdle. Gravity Team CEO Mārtiņš Beņķītis told crypto.news in August that stablecoins can move across borders within seconds, but converting them into local fiat still depends on banking access, liquidity and payout infrastructure.

AllUnity’s Instant FX product places the currency conversion step inside the same Business Mint Account used to mint and redeem its stablecoins.

Banking Circle and Flowdesk support USDAU liquidity

Several financial and digital asset companies are supporting USDAU at launch, covering its reserves, liquidity, redemptions and conversion back into fiat.

Banking Circle will provide reserve and transaction banking services for the dollar reserves backing USDAU. The Luxembourg licensed bank already works with stablecoins and launched institutional settlement services earlier this year after securing regulatory approval for fiat to stablecoin conversion services.

Flowdesk has been appointed as USDAU’s designated liquidity provider and will provide liquidity for market operations.

Archax will serve as a direct minting and redemption partner, giving institutional clients another route to use USDAU for treasury and settlement activities. Hercle will handle off ramp and FX services, including conversions between the stablecoin and fiat currencies.

Bitcoin Suisse, RULEMATCH, BitGo and Galaxy are among the other companies supporting the token’s launch.

BitGo already has a distribution relationship with AllUnity. Under an agreement announced in August, BitGo Europe became a first buyer and institutional liquidity partner for EURAU, CHFAU and SEKAU.

Eligible BitGo clients gained access to those stablecoins through the Business Mint Account, including the ability to mint and redeem the tokens directly with AllUnity. The arrangement connected AllUnity’s issuance infrastructure with BitGo’s institutional custody, trading and over the counter services.

USDAU adds the US dollar to the same multi currency business infrastructure from Sept. 30, with AllUnity offering its euro, Swiss franc, Swedish krona and dollar backed stablecoins through its regulated platform.