DWS, the asset management arm of Deutsche Bank, is partnering with Michael Novogratz's Galaxy Digital and Flow Traders to establish a new venture aimed at issuing euro-denominated stablecoins.
The collaboration between DWS, Flow Traders, and Galaxy Digital, named AllUnity, was officially announced on December 13. AllUnity is set to launch a fully collateralized euro stablecoin, overseen by the German Federal Financial Supervisory Authority (BaFin). Its primary objective is to expedite the widespread adoption of digital assets and tokenization.
Stefan Hoops, CEO of DWS, highlighted the venture's potential in bridging traditional and digital financial ecosystems, enabling secure on-chain settlements for institutional, corporate, and private purposes. Hoops emphasized that AllUnity's stablecoin could facilitate secure payments around the clock, especially beneficial for companies involved in IoT businesses.
Galaxy Digital's CEO, Michael Novogratz, described digital currencies as a natural progression in global payment systems. He lauded Europe for leading the exploration of secure digital currencies and believes the region is instrumental in steering this inevitable transformation.
The planned euro stablecoin will amalgamate DWS's portfolio management and product structuring expertise with Flow Traders' liquidity services and global connectivity across traditional and digital assets. Galaxy Digital will contribute its technological infrastructure and experience in providing digital asset solutions. Its subsidiary GK8 will license tokenization and custody services to support AllUnity.
A representative from Flow Traders confirmed that AllUnity anticipates streamlining its operations in early 2024, with the stablecoin launch estimated within 12 to 18 months post BaFin approval. The launch will also initiate the e-money license process in the first quarter of 2024.
Amid growing regulatory clarity in the European digital asset sector, particularly through the Markets in Crypto-Assets Regulation (MiCA), AllUnity foresees an improved regulatory landscape. DWS has demonstrated rising interest in blockchain technology and digital assets, considering investments in German cryptocurrency firms. Their CEO previously outlined plans for a "digital twin" fund accessible via digital wallets and discussed efforts toward issuing a euro stablecoin.
AllUnity intends to issue euro stablecoins on major public permissionless platforms like decentralized finance (DeFi) applications, following in the footsteps of USDC Issuer Circle, which launched a Euro-backed stablecoin named EURC on various networks, including Stellar, Ethereum, and Avalanche, in September 2023.
