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Deutsche Bank's DWS Group Teams Up with Galaxy Digital to Issue Euro Stablecoin
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Source: Adobe StockDeutsche 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 company named AllUnity with the aim of issuing a euro-denominated stablecoin.
The initiative will be headquartered in Frankfurt and led by Alexander Höptner, former CEO of crypto platform BitMEX, as announced in a joint statement on Wednesday.
The consortium plans to apply for an e-money license from Germany’s financial regulator BaFin, anticipating the launch of its fully collateralized stablecoin within the next 18 months.
Earlier, the European Banking Authority (EBA) released guidelines for stablecoin issuers.
Stablecoin to Cater to Instiutions and Corporates
Leveraging their collective influence in both traditional and crypto markets, the firms intend to create a stablecoin catering to institutions, corporates, and private users. DWS, predominantly owned by Deutsche Bank, oversees assets totaling €860 billion ($927 billion), while Flow Traders handled €2.8 trillion ($3 trillion) worth of assets in the initial half of the year and has been active in crypto since 2017. Galaxy Digital, led by renowned investor Michael Novogratz, offers diverse services ranging from crypto trading and asset management to mining.
According to Alexander Höptner, the partnership combines the trustworthiness of a major asset manager, a highly successful market maker, and a leading innovator in the crypto sector, providing the stability, trust, connection, and market power necessary for viable and usable stablecoins.
This collaborative effort mirrors the latest trend among major companies entering the stablecoin market, particularly focusing on euro-denominated tokens.
While the stablecoin market has grown to approximately $130 billion, euro stablecoins have encountered limited demand, averaging monthly trading volumes of $90 million, compared to the $600 billion monthly average for US dollar-denominated coins.