Wednesday, 4 December 2024
Trending

Crypto News

German asset manager DWS joins Galaxy to issue euro stablecoin

German asset manager DWS joins Galaxy to issue euro stablecoin


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

DWS Group officially announced on Dec. 13 the plan to form AllUnity as part of a new partnership between DWS, Flow Traders and Galaxy to launch a “fully collateralized” euro stablecoin.

AllUnity’s operations will be regulated by the German Federal Financial Supervisory Authority, or BaFin, the announcement notes. AllUnity’s longer-term focus will be to promote the acceleration of mass adoption of digital assets and tokenization.

“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,” DWS CEO Stefan Hoops said. He noted that corporations with internet-of-things businesses could use AllUnity’s stablecoin to make payments “securely and in fractions 24/7.”

Galaxy founder and CEO Novogratz also stated:

“Digital currencies are the natural evolution of the world’s payment system, and Europe — a region at the forefront of the exploration of safe, secure digital money — is paving the way for this inevitable shift.”

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. Novogratz’s digital investment firm Galaxy will provide the technical infrastructure and a track record of delivering digital asset solutions, while its fully-owned subsidiary GK8 will license its tokenization and custodial services to support AllUnity.

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, a spokesperson for Flow Traders told Cointelegraph. “After it has been incorporated in Q1 2024, AllUnity will initiate the process for the E-money license,” the representative noted.

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.

Related: Binance suspends euro stablecoin after 200% price surge

DWS has been increasingly interested in…

Click Here to Read the Full Original Article at Cointelegraph.com News…