Deutsche Bank’s asset management division DWS has formed a strategic joint venture with leading cryptocurrency investment firm Galaxy Digital and Dutch trading firm Flow Traders. The new company, dubbed AllUnity, will focus on issuing and distributing a euro-pegged stablecoin that is regulated under the German financial authority BaFin.
The creation of AllUnity represents a major push into digital asset services for Deutsche Bank, one of the world’s largest financial institutions. By collaborating with industry pioneers Galaxy and Flow Traders, AllUnity aims to accelerate the mainstream adoption of blockchain-based assets and tokenization across institutional and retail investor segments.
According to Stefan Hoops, CEO of DWS, AllUnity will “serve as a bridge between traditional finance and digital markets, constructing core infrastructure for secure on-chain settlements.” Use cases could include enabling corporations with Internet-of-Things businesses to make fractional, 24/7 payments using AllUnity’s regulated stablecoin.
As part of the joint venture, AllUnity will license underlying tokenization custodial technologies from Galaxy’s subsidiary GK8, a leader in institutional-grade digital asset security and infrastructure solutions.
The launch of AllUnity comes alongside improving regulatory clarity around digital assets within the European Union, under the recently adopted Markets in Crypto Assets Regulation (MiCAR) framework. By providing harmonized rules for stablecoin issuers, MiCAR aims to catalyze growth in EU crypto markets while protecting investors.
AllUnity is targeting a launch in the next 18 months and has already appointed digital asset veteran Alexander Höptner as CEO. Höptner previously held senior roles at cryptocurrency exchange BitMEX along with Deutsche Börse and Börse Stuttgart. In the coming months, he will assemble a diverse team spanning crypto, traditional finance, technology, and regulatory expertise to drive the new venture.
With AllUnity, Deutsche Bank aims to firmly stake its claim in the emerging digital asset economy – a sign of the growing mainstream acceptance of crypto and blockchain technology.
#Stablecoin #Cryptocurrency #DeutscheBank
