European stablecoin issuer AllUnity launches USD stablecoin USDAU

AllUnity is launching a new stablecoin pegged to the US dollar, expanding its digital asset lineup as dollar-pegged tokens continue to dominate the global stablecoin market.

The new token, USDAU, will maintain a 1:1 peg to the US dollar through segregated reserves and debut on Ethereum, Solana, Base, Tempo, Arc and Polygon, AllUnity said in a Wednesday announcement shared with Cointelegraph.

AllUnity, regulated under the European Union’s Markets in Crypto-Assets (MiCA), already issues euro-backed EURAU, Swiss franc-backed CHFAU and Swedish krona-backed SEKAU stablecoins. CoinGecko measures EURAU’s market capitalization at roughly $400,000 and CHFAU’s at about $45 million.

The launch comes as European policymakers debate the implications of dollar stablecoin dominance. US dollar-pegged tokens account for more than 99% of the roughly $291 billion global stablecoin market by capitalization, according to CoinGecko.

The European Central Bank warned in June that greater use in European tokenized finance could deepen dependence on the dollar and weaken the euro’s role.

Cointelegraph approached AllUnity for comment on the role of European issuers in the US dollar stablecoin market and concerns over Europe’s reliance on dollar-denominated stablecoins, but did not receive a response by the time of publication.