DWS Group has announced its plans to launch a new stablecoin venture to be called AllUnity, part of a new partnership between DWS, Flow Traders and Galaxy. Its mission is to revolutionize the on-chain economy by issuing a fully collateralized EUR-denominated stablecoin.
AllUnity will be regulated by BaFin, Germany’s financial supervisory authority. Its longer-term focus will be to accelerate mass market adoption of digital assets and tokenization.
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AllUnity’s partners consist of three world-class firms with significant market reach and experience in developing and distributing leading financial products to investors in a regulatory-compliant manner. The partnership will combine DWS’ strong portfolio management and product structuring capabilities, Flow Traders’ liquidity provisioning expertise and connectivity in both traditional and digital assets globally, and Galaxy’s technical infrastructure and track record of delivering innovative digital asset solutions to investors.
AllUnity will be seeking to deliver the leading regulated EUR-denominated stablecoin for institutional, corporate, and private user adoption. In addition, Galaxy’s wholly-owned subsidiary GK8 will license its tokenization and custodial technology to support AllUnity in developing its stablecoin.
AllUnity will launch during period of improving regulatory clarity
AllUnity 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.
AllUnity said it will initiate the process of applying for an E-money license with BaFin, with the intention of launching the stablecoin in 12-18 months. The launch of AllUnity is subject to certain conditions precedent, including but not limited to the receipt of required approvals from BaFin and competition authorities.
The partners said they intend to appoint Alexander Höptner as Chief Executive Officer of AllUnity. His experience in developing crypto products, expertise in broader traditional market structure, and in-depth financial industry knowledge are considered to be the key attributes that the partners believe will help him to successfully bring this business to market.
“The envisaged partnership between DWS, Flow Traders and Galaxy is unique,” Höptner said. “Their market reach and expertise will enable AllUnity to develop a go-to-market strategy for a viable EUR-denominated stablecoin in order to advance the on-chain economy.
AllUnity will also 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. 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.”
AllUnity is intended to 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 (Internet of Things) businesses could use the regulated EUR stablecoin to make payments in fractions and 24/7 securely, and at their own convenience.
AllUnity will also expand Flow Traders’ strategy to accelerate financial market innovation and the diversification of its core trading capabilities as well as continuing to bring value to its stakeholders and the broader digital asset ecosystem.
AllUnity will be incorporated in Q1, 2024 and headquartered in Frankfurt, Germany.