Deutsche Bank’s Asset Management Arm Teams Up
AllUnity is a partnership between DWS Group, Flow Traders, and Galaxy Digital, aiming to launch a euro-backed stablecoin that combines traditional and crypto market strengths. DWS Group manages €860 billion in assets, Flow Traders traded €2.8 trillion in the first half of 2021, and Galaxy Digital is a major crypto player.
Setting Up Shop in Frankfurt
AllUnity is based in Frankfurt and plans to obtain an e-money license from Germany’s regulator, BaFin, within 18 months to launch the fully collateralized stablecoin. Regulatory approval is crucial, and the stablecoin is expected to launch in Q1 2024, pending the full e-money license. The trio aims to meet all legal requirements to make tokenized assets more mainstream.
Growing Demand for Euro-backed Stablecoins
The stablecoin market, valued at around $130 billion, is dominated by dollar-backed tokens, but euro-denominated tokens have seen less demand. However, the EU’s new regulatory framework for crypto assets and the increase in the tokenization of traditional assets by large firms could lead to greater adoption of euro-backed stablecoins.
AllUnity’s Winning Strategy
AllUnity’s euro-pegged stablecoin aims for stability by hoarding cash and top assets like US bonds, led by DWS Group’s financial experts. The collaboration between traditional and crypto giants may make tokenized assets more widely accepted.
Hot Take
AllUnity, a new collaboration between DWS Group, Flow Traders, and Galaxy Digital, aims to launch a euro-backed stablecoin following regulatory approval in Germany. Their unique strategy and combination of traditional and crypto market players may lead to greater adoption of euro-backed tokens and make tokenized assets more mainstream.
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