Deutsche Bank’s DWS launches EUR stablecoin via AllUnity

DWS, the asset management arm of Deutsche Bank (NASDAQ: DB), announced the formation of a new venture to launch a euro-denominated stablecoin to expand its Web3 reach.

To achieve the planned launch, DWS said it would partner with Galaxy Digital and Flow Traders to establish a financial infrastructure provider called AllUnity. According to a joint statement, AllUnity will be the launch pad for a regulated and fully collateralized EUR-denominated stablecoin.

The joint venture parties submitted that the proposed launch would introduce a new wave of investors into the on-chain economy by bridging traditional finance and decentralized finance (DeFi). At its core, the proposal is intended to “bring greater institutional adoption of tokenized assets.”

The parties expressed their belief that AllUnity can achieve its objectives, given the significant experience of its members. DWS is expected to bring rich experience in portfolio management and product structuring, joining forces with Galaxy Digital’s extensive blockchain technology expertise.

GK8, a subsidiary of Galaxy Digital, will lend its tokenization and management services to AllUnity. At the same time, Flow Traders’ knowledge of liquidity provision is expected to be a central theme of this offering.

The planned appointment of Alexander Höptner as CEO of AllUnity is expected to further boost the project’s success, pointing to his proven track record in the DeFi and mainstream finance sectors.

“The anticipated partnership between DWS, Flow Traders and Galaxy is unique,” ​​he said.
Höptner. “Their market reach and expertise will enable AllUnity to develop a viable go-to-market strategy for EUR-denominated stablecoins to advance the on-chain economy.”

For all of AllUnity’s tailwinds, the project must pass extensive legislative scrutiny by European regulators. With full integration expected in early 2024, the joint statement said AllUnity will be regulated by the German Federal Financial Supervisory Authority (BaFin).

AllUnity will need to obtain an e-money license from BaFin while also dealing with the new stablecoin regulations included in the EU’s Markets for Cryptocurrency Assets (MiCA) Regulations.

Central banks look suspiciously at stablecoins

The European Central Bank has made no secret of its skepticism about stablecoins, explaining that they have the potential to disrupt the regional bloc’s financial system.

Central bank executives are pursuing the development of a central bank digital currency (CBDC) with tokenization properties. Denis Beau, Vice President of Banque de France
In a recent speech, he stated that CBDCs should be developed to support tokenized assets or risk taking over mainstream finance by stablecoins.

“If we cannot adapt central bank funds to the evolving environment, meaning that central bank funds cannot be used to settle tokenized transactions, this means industry participants may turn to alternative payment assets such as stablecoins,” Beau said. “It is.”

Watch: Centi launches first stablecoin on BSV, which is backed by the Swiss bank.

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