The partnership, named AllUnity, will launch in the first quarter of next year after receiving initial regulatory approvals from BaFin, Germany’s financial regulator, but will only launch the stablecoin after receiving a full electronic money license in about 12-18 months. Unlike ‘normal’ cryptocurrencies, stablecoins are pegged to a fixed amount, either through backing with assets or an algorithmic process. DWS is entering a market that is dominated by dollar-pegged stablecoins, with top players such as Tether and USDC all pegged to the US currency. However, the sector has entered a new period of development, following improving regulatory clarity from the adoption of the EU’s Markets in Crypto Assets Regulation (MiCAR). Other firms have sought to capitalise off this gap, with Société Générale becoming the first major bank to publicly list a stablecoin, named EUR CoinVertible, last week (6 December). “AllUnity’s longer-term focus will be to accelerate mass market adoption of digital assets and tokenisation,” DWS said. The partnership will also benefit from Galaxy’s wholly-owned subsidiary GK8, who will license its tokenisation and custodial technology to support AllUnity in developing its stablecoin. Alexander Höptner, former CEO of BitMEX, has been selected to head up the project. He said: “The envisaged partnership between DWS, Flow Traders and Galaxy is unique. Their market reach and expertise will enable AllUnity to develop a go-to-market strategy for a viable euro-denominated stablecoin in order to advance the on-chain economy. “AllUnity will also be able to leverage MiCAR, which we believe will contribute to growing the stablecoin market as it provides a robust regulatory framework that enhances investor protection and market integrity. “Given today’s market developments, I am personally excited about the prospects of AllUnity and honoured to have been chosen as its designated CEO. In the coming period, we will focus on building a strong team of talented crypto, financial markets, technology, and regulation experts to deliver on our mission.” Stefan Hoops, CEO of DWS, added: “Through the future creation of AllUnity, we 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. “For instance, corporates with Internet of Things businesses could use our regulated euro stablecoin to make payments in fractions and 24/7 securely, and at their own convenience. “We look forward to the collaboration with our partners and to enhancing investor access to digital assets for the future.”
DWS Launches Partnership To Develop Euro Stablecoin – WorldNewsEra
