Asset manager DWS is making moves to launch the first regulated euro-backed stablecoin in 2025 through a new joint venture firm named AllUnity. The CEO, Stefan Hoops, shared this exciting news with Reuters on July 11, emphasizing that the stablecoin will be fully regulated by Germany’s financial regulator, BaFin.
Hoops expressed his anticipation for early interest from crypto investors, with expectations of broader demand in the future. He highlighted the potential for industrial companies engaged in ‘internet of things’ continuous payments to also show interest in the stablecoin as time progresses.
The collaborative effort to establish AllUnity involved DWS, Flow Traders, and Galaxy Digital coming together in June. This initiative marks a significant step towards introducing a Germany-based euro stablecoin, with AllUnity being headquartered in Frankfurt and seeking regulation from BaFin for its upcoming stablecoin.
Notably, BaFin has not yet granted an e-money license for any stablecoin, making DWS poised to be the first recipient of such approval. While the regulator has not provided official comments on this development, the creation of AllUnity signals a proactive approach to compliance and innovation within the stablecoin sector.
The announcement from DWS coincides with the recent implementation of EU-wide Markets in Crypto-Assets (MiCA) rules, which became effective on June 30. These regulations have already influenced the stablecoin market cap in Europe, prompting issuers to align with the new standards.
One notable example is Circle, which declared on July 1 that its USDC and EURC stablecoins comply with MiCA requirements, positioning itself as the inaugural global stablecoin issuer to achieve regulatory approval. This commitment to compliance reflects a broader trend within the industry towards ensuring transparency and regulatory adherence.
DWS, a prominent player majority-owned by Deutsche Bank, manages a substantial asset value of 941 billion euros ($1 trillion). In a move demonstrating its commitment to embracing digital assets, the firm previously launched crypto exchange-traded commodities (ETCs) in April, further solidifying its position at the forefront of financial innovation.
With the impending launch of the regulated euro-backed stablecoin in 2025, DWS is poised to make a significant impact on the digital asset landscape, paving the way for enhanced accessibility and adoption of stablecoin technology within the European market. By prioritizing regulatory compliance and fostering collaboration across industry stakeholders, DWS is spearheading a new era of financial innovation and digital asset management.