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News

DWS, Galaxy, and Flow Traders team up to issue Euro stablecoin

Thursday 14 December 2023 12:49 CET | News

Deutsche Bank’s asset management arm, DWS, has announced a new venture with Galaxy Digital and Flow Traders to issue a euro-denominated stablecoin jointly. 

 

DWS Group officially announced the plan to form AllUnity as part of a new partnership between DWS, Flow Traders, and Galaxy to launch a fully collateralised euro stablecoin.  

According to the official statement, AllUnity’s operations will be regulated by the German Federal Financial Supervisory Authority, BaFin. AllUnity’s longer-term focus will be to accelerate the mass adoption of digital assets and tokenization.

 

Deutsche Bank’s asset management arm, DWS, has announced a new venture with Galaxy Digital and Flow Traders to issue a euro-denominated stablecoin jointly.

 

Building financial bridges 

Officials from DWS stated that through the future creation of AllUnity, the companies will bridge the gap between the traditional and digital finance ecosystems to build a core infrastructure provider that facilitates secure on-chain settlement for institutional, corporate, and private use. Furthermore, corporations with internet-of-things businesses could use AllUnity’s stablecoin to make payments securely and in fractions 24/7. 

The planned euro stablecoin will combine DWS’ portfolio management and product-structuring expertise with Flow Traders’ liquidity services and connectivity in traditional and digital assets worldwide. Galaxy is set to provide the technical infrastructure and a track record of delivering digital asset solutions. At the same time, its fully owned subsidiary GK8 will licence its tokenisation and custodial services to support AllUnity. 

Moreover, AllUnity expects to incorporate its business in early 2024, while the stablecoin launch is expected to occur in 12 to 18 months after BaFin approval. After it has been incorporated in Q1 2024, AllUnity will initiate the process for the e-money licence. 

While the stablecoin market has grown to approximately USD 130 billion, euro stablecoins have encountered limited demand, averaging monthly trading volumes of USD 90 million, compared to the USD 600 billion monthly average for US dollar-denominated coins. 

Additionally, the issuers anticipate a period of improving regulatory clarity in the European digital asset industry, specifically expecting more clarity from the newly adopted Markets in Crypto Assets regulations (MiCA), which provide a legal framework for stablecoins and other digital assets.

Source: Link


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Keywords: stablecoin, cryptocurrency, crypto asset, partnership, digital assets, regulation
Categories: DeFi & Crypto & Web3
Companies: Deutsche Bank, Flow Traders, Galaxy
Countries: World
This article is part of category

DeFi & Crypto & Web3

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Deutsche Bank

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