Asset manager DWS is planning to launch the first regulated euro-denominated stablecoin in 2025 under a new joint venture firm called AllUnity, the firm’s CEO Stefan Hoops told Reuters on July 11.
Hoops said the stablecoin will be fully regulated under Germany’s financial regulator, BaFin. He added that the firm expects crypto investors to create early demand for the stablecoin and sees interest in the token growing over time among other cohorts.
According to Hoops:
“By the medium term we expect wider demand, for instance from industrial companies working with ‘internet of things’ continuous
payments.”
He also revealed that DWS incorporated AllUnity with Flow Traders and Galaxy Digital in June.
Germany-based euro stablecoin
The formation of AllUnity represents a Germany-based attempt to create a euro stablecoin.
AllUnity is based in Frankfurt, and the company intends for Germany’s Federal Financial Supervisory Authority (BaFin) to regulate its upcoming stablecoin.
Reuters noted that BaFin has not yet granted its e-money license regulation to any stablecoin, meaning that DWS would be the first to receive approval for such a product. The regulator did has yet to comment on the matter.
The news comes shortly after EU-wide Markets in Crypto-Assets (MiCA) rules concerning stablecoins came into effect on June 30. Data indicates that the new rules have impacted the stablecoin market cap in Europe.
Few stablecoin issuers explicitly claim compliance: On July 1, Circle announced that its USDC and EURC stablecoins are compliant with MiCA, calling itself the first global stablecoin issuer to gain approval.
DWS is majority-owned by Deutsche Bank and has 941 billion euros ($1 trillion) under management. In April, it launched crypto exchange-traded commodities (ETCs).
Source: CryptoSlate
