In an increasingly digital financial world, German asset manager DWS, with partners Galaxy Digital and Flow Traders, announced the establishment of a new venture, AllUnity. The goal is to issue a stablecoin denominated in Euros, serving as a bridge between traditional and digital financial ecosystems. The planned project, regulated by the German Federal Financial Supervisory Authority (BaFin), aims to accelerate the widespread adoption of digital assets and tokenization.
Faced with a dynamically changing financial world, DWS Group, the asset management arm of Deutsche Bank, is entering a new digital era. Together with Galaxy Digital (founded by Michael Novogratz) and Flow Traders, DWS announced the creation of AllUnity. The new company aims to issue a stablecoin, a stable digital currency, which will have its value linked to the Euro.
This project is a response to the growing interest in the digitization of finance. AllUnity intends to leverage DWS’s experience in portfolio management and product structuring, Flow Traders’ skills in providing liquidity, and technical support from Galaxy Digital. Importantly, AllUnity’s operations will be regulated by BaFin, adding legitimacy and security to the project.
Stefan Hoops, CEO of DWS, emphasizes that the establishment of AllUnity aims to build infrastructure connecting the traditional financial world with the digital ecosystem. This will make secure settlements on blockchain possible for institutions, companies, and individual customers. The use of stablecoin could find wide application, for example in payments related to the Internet of Things (IoT).
Novogratz, founder and CEO of Galaxy, points out the natural evolution of payment systems towards digital currencies. Europe, being at the forefront of research on secure digital money, is paving the way for this inevitable change.
The stablecoin to be introduced by AllUnity combines DWS’s expertise with the global liquidity services of Flow Traders and the technical infrastructure of Galaxy. Additionally, GK8, wholly owned by Galaxy, will license its tokenization and storage services to support AllUnity.
It is planned that AllUnity will begin operations in early 2024, and the introduction of the stablecoin will occur within 12 to 18 months after obtaining BaFin approval. A representative of Flow Traders in an interview with Cointelegraph noted that after incorporation in the first quarter of 2024, AllUnity will begin procedures to obtain an electronic money license.
In the context of evolving regulation of the digital asset market in Europe, AllUnity’s issuance of a Euro stablecoin is an important step. According to predictions, new regulations for crypto-asset markets (MiCA) will provide clearer legal frameworks for stablecoins and other digital assets.
DWS, increasingly interested in blockchain technology and digital assets, had already planned investments in German crypto companies and talked about introducing “digital twins” of funds available to clients with digital wallets.
AllUnity plans to issue the Euro stablecoin on all major public permissionless L1 and L2 layers, including applications in decentralized finance (DeFi). This collaboration could be a milestone on the path to integrating traditional and digital financial ecosystems, opening new opportunities for institutions, companies, and individual investors.
