DWS, a German asset manager, has joined forces with Flow Traders, a liquidity provider, and Galaxy, a digital asset firm, to launch a euro-denominated stablecoin.
The stablecoin, which the euros will fully back, is part of a new venture called AllUnity, which will introduce the stablecoin to the on-chain economy and accelerate the adoption of digital assets and tokenization.
AllUnity, subject to regulatory approval from BaFin, the German financial regulator, will leverage the expertise and capabilities of the three partners in different sectors;
DWS will provide portfolio management, Flow Traders will provide liquidity provision, and Galaxy will provide technical infrastructure.
Furthermore, The venture will be led by Alexander Höptner, who has been appointed as the CEO of AllUnity.
The launch of the euro stablecoin comes at a time when the digital assets space in the EU is seeing improved regulatory clarity, following the adoption of the Markets in Crypto Assets Regulation (MiCAR).
MiCAR is a comprehensive framework to regulate crypto assets and service providers in the EU and to encourage collaboration and consumer protection.
Stefan Hoops, CEO of DWS, had this to say on the matter;
“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.“
Mike Kuehnel, CEO of Flow Traders, also commented;
“To truly democratize global financial markets, transparency, efficiency, and accessibility needs to be fostered and embraced by all market participants. The tokenization of financial assets will play a significant role and contribute to improving financial markets as well as bringing a new level of maturity to the digital asset space.
Earlier this year, DWS announced plans to launch a suite of crypto ETPs in partnership with Galaxy, with the first ETP planned to be unveiled by the end of 2023.
The crypto ETPs would offer investors exposure to various digital assets, such as Bitcoin, Ethereum, and DeFi tokens, through a regulated and transparent vehicle.
