Deutsche Bank's DWS is collaborating with crypto invesment firm Galaxy Digital and liquidity provider Flow Traders to create a joint venture for issuing a EUR-denominated stablecoin.
The new venture, AllUnity, will be regulated by BaFin, Germany’s financial supervisory authority. Set for launch within the next 18 months, AllUnity’s longer-term focus will be to accelerate mass market adoption of digital assets and tokenization.
Stefan Hoops, CEO DWS, comments: “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 IoT businesses could use our regulated EUR 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.”
As part of the arrangement, AllUnity will licence tokenization and custodial technology from Galaxy Digital subsidiary GK8.
The new business will launch during a period of improving regulatory clarity in the digital assets space within the EU, following the newly adopted Markets in Crypto Assets Regulation (MiCAR). The introduction of MiCAR provides a harmonized legal framework for stablecoins intended to result in greater protection for all market participants.
Alexander Höptner, formerly of BitMEX, Börse Stuttgart and Deutsche Börse, will lead the new business.
"AllUnity will 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," he says. "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.”