German asset manager DWS joins Galaxy to launch euro stablecoin.

Deutsche Bank's asset management arm DWS is forming a new venture with Michael Novogratz's Galaxy Digital and Flow Traders to jointly issue a euro-denominated stablecoin.

On December 13, DWS Group officially announced plans to establish AllUnity as part of a new partnership between DWS, Flow Traders and Galaxy to launch a “fully guaranteed” euro stablecoin.

AllUnity's operations are regulated by Germany's Federal Financial Supervisory Authority, or Baffin, the announcement notes. AllUnity's long-term focus will be to accelerate mass adoption and tokenization of digital assets.

“Through the creation of AllUnity in the future, we are bridging the gap between traditional and digital financial ecosystems to build core infrastructure providers that facilitate secure on-chain living for institutions, corporate and private use,” said DWS CEO Stephan Hoopes.

Corporations with Internet-of-things businesses can use AllUnity's stablecoin payment “securely and fractionally 24/7,” he noted.

Galaxy founder and CEO Novogratz also said:

“Digital currencies are the natural evolution of the global payment system, and Europe – a region at the forefront of the search for safe and secure digital currencies – is paving the way for this inevitable change.”

The proposed euro stablecoin combines DWS's portfolio management and product-structuring expertise with Flow Traders' liquidity services and relationships with traditional and digital assets worldwide.

Novogratz's digital investment company Galaxy offers experience in providing technical infrastructure and digital asset solutions. At the same time, the wholly-owned GK8 licenses token and security services to support the unity of all.

AllUnity expects to incorporate the business in early 2024, the stablecoin launch is expected to happen within 12 to 18 months after approval from BaFin, a spokesperson for Flow Traders told Cointelegraph. “After incorporation in Q1 2024, AllUnity will start the process for e-money licensing,” he said.

The issuers expect a period of improving regulatory transparency in the European digital asset industry, especially from the newly adopted markets Crypto Assets Regulation (MiCA), which provides a legal framework for statscoins and other digital assets.

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DWS is increasingly interested in exploring blockchain technology and digital assets and plans to invest in two German crypto companies in early 2023. In June, the CEO of DWS announced plans to launch a “digital twin” fund accessible to customers with digital wallets, and talked about “trying to create a single euro stable coin.”

According to Flow Traders, AllUnity plans to issue a Euro stablecoin across all major public licenseless L1s and L2s, including decentralized finance or DeFi.

In September 2023, the USDC Issuing Circle launched a version of the Euro-backed stablecoin, EURC, and a Stellar-based version supported on the Etherular and Avalanche networks.

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