AllUnity's fourth stablecoin chases dollars while its euro token sits near $400,000

CoinGecko's figures make CHFAU, AllUnity's Swiss franc token, about 112 times the size of EURAU, its euro token ^[12]. The pair comes to about $45.4 million ^[13], or roughly 0.016% of a $291 billion stablecoin market ^[8][14]. Dollar-pegged tokens hold more than 99% of that market, upward of $288 billion ^[15]. Every other currency combined has less than about $2.9 billion ^[16], so AllUnity's two measured coins are already about 1.6% or more of the non-dollar pool ^[17].

Seen that way, the fourth coin ^[4] is a decision about where to spend the next product slot. AllUnity, a BaFin-regulated e-money institution ^[3] co-founded by Deutsche Bank's asset manager ^[6], is putting it into the dollar, not into growing a euro token that sits near $400,000 ^[7]. It does so after the ECB warned in June that greater use of dollar tokens in European tokenized finance could deepen dependence on the dollar and weaken the euro's role ^[9]. AllUnity did not respond when Cointelegraph asked about European issuers' place in the dollar market ^[11].

For a treasury desk, the listing on six chains ^[1] matters less than the account behind it. A company can mint in the supported currencies and move value between them on one platform ^[5]. The likely path is a conversion leg: mint euros, switch to dollars, pay a supplier, and let the supplier redeem at 1:1 ^[2]. In that version USDAU carries a lot of payments on a small float, and CoinGecko's market cap undercounts the business. In the other version, European institutions hold USDAU as a standing dollar balance because it is issued under MiCA against segregated reserves ^[2], and the cap grows with them.

I think the conversion version is the more likely one. The feature AllUnity shipped alongside the coin is an FX tool, and institutional clients mint and redeem USDAU through that same account ^[5]. The case against is that a founder list of DWS, Flow Traders and Galaxy Digital ^[6] brings in institutional money the euro coin never drew ^[7]. If USDAU's cap passes CHFAU's $45 million ^[7] within its first few months, the conversion view is wrong, because that would mean companies are keeping dollars with the issuer instead of passing them through.