What is Anchored Coins EUR (AEUR)?

Quick Facts

• Issuer: Anchored Coins AG, based in Zug, Switzerland
• Peg: 1:1 to the Euro (EUR)
• Blockchains: Ethereum and BNB Smart Chain
• Founded: 2022
• Reserves: Held at regulated Swiss banks, independently audited
• Regulator membership: VQF (Swiss self-regulatory organization, recognized by FINMA)
• Compliance: KYC/AML required for direct issuance

Introduction

AEUR is a Euro-backed stablecoin issued natively on both the Ethereum and BNB Smart Chain blockchains. Each token is designed to maintain a 1:1 peg with the Euro, giving users a stable digital asset rooted in one of the world's most widely used fiat currencies.

For crypto users who want to hold, transact, or settle in Euros without leaving the blockchain ecosystem, AEUR offers a regulated and transparent option.

History & Background

Anchored Coins AG — formerly known as Damoon Technologies — was incorporated in Switzerland in 2022. The company was founded by a team of entrepreneurs with deep roots in financial services and digital assets, and is chaired by Calvin Cheng, a prominent investor and former member of Singapore's Parliament.

AEUR launched in 2023 and was listed on major exchanges, including Binance, shortly after. In 2024, operations were temporarily impacted following bankruptcy proceedings against one of its reserve banking partners, FlowBank SA. The company successfully restructured its reserve coverage, moving collateral entirely to Swissquote Bank SA.

How Anchored Coins EUR Works

AEUR uses a straightforward collateral-backed minting and burning model. When a user deposits Euros with Anchored Coins AG, an equivalent number of AEUR tokens are minted and sent to their wallet. Redemptions work in reverse: the user returns AEUR, the tokens are burned, and Euros are returned to their bank account.

The smart contract also supports compliance-driven controls, including the ability to freeze or unfreeze token addresses as directed by law enforcement. Independent audits verify both contract security and reserve adequacy.

Tokenomics

AEUR is a fully collateralized stablecoin, meaning every token in circulation is backed by an equivalent Euro held in a regulated reserve bank. The issuance mechanism is constrained by the reserve: the smart contract cannot mint more tokens than the reserve supports.

Users acquiring AEUR directly from Anchored Coins AG must complete KYC and AML verification. Once tokens are in circulation, they can be freely transferred between any wallets or used on supported DeFi platforms.

Ecosystem & Use Cases

AEUR serves several practical roles in the on-chain economy:

• Asset protection: Provides a stable store of value, shielding users from crypto market volatility.
• Cross-border payments: Enables fast, low-cost Euro transfers compared to traditional banking channels.
• DeFi access: AEUR can be traded on decentralized exchanges and deployed in liquidity pools and other DeFi protocols.
• OTC and institutional settlement: Large counterparties can use AEUR for near-instant Euro settlement on-chain.

Team, Governance & Community

Anchored Coins AG is incorporated in Zug, Switzerland, and operates as a centralized issuer. The company is a member of VQF, a Swiss self-regulatory organization officially recognized by FINMA, Switzerland's top financial regulator. This membership binds the company to Swiss anti-money laundering standards.

Governance is centralized: Anchored Coins AG controls minting, burning, and compliance functions directly through the smart contract. The chairman is Calvin Cheng, who also serves as Serbia's Honorary Consul to Singapore.

Advantages

• Full reserve backing: Every AEUR token is backed 1:1 by Euros in a regulated Swiss bank.
• Regulatory clarity: VQF membership and FINMA oversight provide strong compliance credentials.
• Multi-chain availability: Deployed on both Ethereum and BNB Smart Chain for broad accessibility.
• Independent audits: Reserve verification is conducted by a third-party assurance firm.
• Euro exposure: Fills a gap in the stablecoin market for a reliable EUR-denominated digital asset.

Risks & Challenges

• Centralization risk: The issuer can freeze token addresses and controls all minting and burning.
• Counterparty risk: Reserve integrity depends on the health of the chosen banking partners.
• Regulatory headwinds: As a Swiss company, Anchored Coins AG cannot issue new AEUR tokens under the EU's MiCA regulation, which requires EUR stablecoin issuers to be EU-licensed.
• Peg stability: Like other fiat-backed stablecoins, AEUR can temporarily deviate from its peg in low-liquidity conditions.

Long-Term Vision

Anchored Coins AG has stated its intent to ensure continuity for existing AEUR holders by working toward a MiCA-compliant solution. The long-term goal is to preserve the utility of AEUR as a regulated Euro stablecoin, whether through a new licensing framework or a compliant successor structure. The broader vision aligns with the growing demand for trustworthy, Euro-denominated digital assets as European crypto regulation matures.