German Asset Manager DWS to Issue Euro Stablecoin Along with Galaxy
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To uphold the token’s value, stablecoin issuers often reserve cash or liquid assets. Amid rising interest rates, DWS is poised to manage the reserves for the new stablecoin. Deutsche Bank’s DWS Group, along with Dutch market maker Flow Traders Ltd. and crypto fund manager Galaxy Digital Holdings Ltd, is set to establish a new entity named AllUnity. The primary objective of AllUnity is also to issue a euro-denominated stablecoin, aiming to foster wider acceptance of tokenized assets in mainstream finance. The company, headquartered in Frankfurt and led by Alexander Höptner, former BitMex CEO, plans to apply for an e-money license with Germany’s financial watchdog, BaFin, with the ambition to launch the stablecoin within the next 18 months. Drawing on their collective expertise in both traditional and crypto markets, the consortium aims to create a successful stablecoin tailored for institutions, corporates, and private users. DWS, majority-owned by Deutsche Bank, oversees assets totaling €860 billion ($927 billion), while Flow Traders, active in the crypto space since 2017, traded assets worth €2.8 trillion ($3 trillion) in the first half of the year. For the Euro stablecoin launch, the DWS Group has partnered with Galaxy Digital. Galaxy Digital, led by renowned investor Michael Novogratz, offers a range of services, including crypto trading, asset management, and mining. Speaking on the development, Höptner further said: “You need to have the stability, the trust, the connection and market power to make stablecoins really viable and usable. This partnership is pretty unique because it combines the trustworthiness of a big asset manager, that of a highly successful market maker and of a leading innovator in the crypto sector.” Growing Focus on Euro-Backed Stablecoin In a strategic move, Deutsche Bank’s DWS Group, Flow Traders, and Galaxy Digital plan to create AllUnity, a Frankfurt-based company, to issue a euro-denominated stablecoin.…
Filed under: News - @ December 14, 2023 4:14 am