DWS and Galaxy Digital Partnership Plans to Launch Euro Stablecoin in 2024
Summary:
DWS, Deutsche Bank's investment management arm, is collaborating with Galaxy Digital and Flow Traders to launch a euro-denominated stablecoin named AllUnity. The operations will be under the jurisdiction of Germany's Federal Financial Supervisory Authority, BaFin. The project will leverage DWS's asset management expertise, Galaxy's technical infrastructure, and Flow Traders' liquidity services. The euro stablecoin is anticipated for launch 12 to 18 months post-BaFin approval.
DWS, the investment management segment of Deutsche Bank, is collaborating with Michael Novogratz's Galaxy Digital and Flow Traders to introduce a euro-based stablecoin. On December 13, DWS Group officially unveiled plans to build AllUnity, an initiative backed by partners DWS, Flow Traders, and Galaxy, aiming to roll out a fully supported euro stablecoin. AllUnity's activities will fall under the jurisdiction of the German Federal Financial Supervisory Authority – BaFin as per the press announcement. Additionally, the company’s extensive focus is to enhance the distribution of digital assets and tokenization on a broad scale.
The creation of AllUnity is intended to act as a bridging solution between traditional and digital finance worlds, providing infrastructural support for secure on-chain settlements for institutional, corporate, and personal purposes, as per DWS CEO Stefan Hoops. A focus will also be on corporations operating within the Internet of Things (IoT), with AllUnity’s stablecoin able to enable secure, continuous payments.
Michael Novogratz, Galaxy’s founder and CEO, voiced his belief in cryptocurrencies as the inevitable evolutionary step in global finance, with Europe's emphasis on developing safe, secure digital currency adding traction to this shift.
The proposed euro stablecoin will merge DWS's asset management and product-structuring capabilities with Flow Traders' liquidity offerings and traditional and digital asset connectivity worldwide. Galaxy will contribute its technical infrastructure along with a proven record of establishing digital asset solutions, whilst its full subsidiary GK8 will provide tokenization and custodian services to AllUnity.
AllUnity plans to incorporate in the first quarter of 2024, with the launch of the stablecoin expected 12 to 18 months after BaFin approval, as mentioned by a representative from Flow Traders.
With the anticipated clarity in regulatory protocols surrounding digital asset trading in Europe, in part due to the newly passed Markets in Crypto Assets regulations (MiCA), it is expected there will be a favourable environment for the introduction of the stablecoin.
DWS has shown an increased interest in blockchain technology, having reportedly considered investing in two German crypto firms. It also disclosed plans in June to launch a “digital twin” fund available to clients with digital wallets while hinting at the possibility of a euro stablecoin issuance.
In comparison to its peers, AllUnity's euro stablecoin will be distributed across all major public permissionless L1s and L2s to include in its use cases decentralized finance (DeFi).
Circle, the issuer of USDC, launched a Stellar-based version of its euro-backed stablecoin, EURC, in September 2023, besides its existing Ethereum and Avalanche versions.
Published At
12/13/2023 11:57:01 AM
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