DWS Announces First Regulated Euro-Backed Stablecoin Set for 2025

YEREVAN (CoinChapter.com) — Asset manager DWS has confirmed plans to launch the first regulated euro-denominated stablecoin in 2025. The new stablecoin will be managed under a joint venture firm named AllUnity. Stefan Hoops, CEO of DWS, shared these developments with Reuters on July 11, 2024.

The stablecoin will operate under the supervision of Germany’s financial regulator, BaFin. Hoops stated that DWS expects initial interest from crypto investors and foresees growing demand from other sectors over time.

Partnership with Flow Traders and Galaxy Digital to Launch Euro-Backed Stablecoin

Hoops indicated that crypto investors will likely drive early adoption of the euro-backed stablecoin. This interest is expected to set the stage for broader market acceptance.

“By the medium term, we expect wider demand, for instance, from industrial companies working with ‘internet of things’ continuous payments,”

Hoops said.

Flow Traders and Galaxy Digital joined forces with DWS to establish AllUnity in June. This collaboration combines the strengths of each company to launch and operate the stablecoin successfully.

AllUnity Targets First BaFin E-Money License Amid New EU Crypto Regulations

Based in Frankfurt, AllUnity aims to be the first stablecoin to receive BaFin’s e-money license. Securing this regulatory approval would mark an important milestone for DWS and the European stablecoin market. Since BaFin has not yet issued such a license to any other stablecoin, this initiative is highly significant.

Implemented on June 30, the EU-wide Markets in Crypto-Assets (MiCA) regulations have already influenced the stablecoin market in Europe. Consequently, these rules provide a clear regulatory framework for stablecoins, boosting market confidence and adoption.

DWS and Circle Make Significant Moves in the Crypto Market

Deutsche Bank holds the majority ownership of DWS, which manages assets worth 941 billion euros ($1 trillion). In April, the company launched crypto exchange-traded commodities (ETCs), marking its initial foray into the cryptocurrency market.

Circle, another major player in the stablecoin market, announced on July 1 that its USDC and EURC stablecoins are compliant with MiCA. Circle claims to be the first global stablecoin issuer to gain approval under these new rules.

The post DWS Announces First Regulated Euro-Backed Stablecoin Set for 2025 appeared first on CoinChapter.