July 12 Crypto News – DWS to Launch Germany’s First Regulated Euro Stablecoin by 2025

July 12 Crypto News – Germany’s First Regulated Euro Stablecoin Set for 2025 by DWS

July 12 Crypto News – DWS, an asset management firm owned by Deutsche Bank, is on track to introduce Germany’s first euro-denominated stablecoin regulated by the Federal Financial Supervisory Authority (BaFin). This move signifies a pivotal advancement for the European financial landscape, as DWS oversees assets worth €941 billion ($1.02 billion) globally.

MiCA Framework Spurs Industry-Wide Compliance Efforts

The planned launch of this stablecoin by 2025 will be executed through DWS’s newly established company, AllUnity. This innovative entity is a collaborative effort involving DWS, Flow Traders, and Galaxy Digital. Despite the lack of detailed information about the asset at the time of publishing, Stefan Hoops, CEO of DWS, has highlighted the stablecoin’s potential to serve both digital asset investors and industrial applications.

“In the short term, we expect demand from investors in digital assets, but by the medium term, we expect wider demand, for instance from industrial companies working with ‘internet of things’ continuous payments,” Hoops stated.

Adapting to the Markets in Crypto-Assets (MiCA) Framework

This initiative is part of a broader regulatory environment shaped by the Markets in Crypto-Assets (MiCA) framework in Europe. Effective since June 30, MiCA has established comprehensive standards for stablecoin issuance, including requirements for whitepaper publication, governance, reserve management, and prudential standards.

Major industry players are making necessary adjustments to comply with MiCA regulations. For instance, BeInCrypto reported that Circle, the issuer of USDC and EURC stablecoins, secured an Electronic Money Institution (EMI) license on July 1, a requisite for any issuer aiming to offer crypto tokens with dollar and euro parity within the EU.

Industry Adjustments and Market Impact

Additionally, prominent crypto exchanges such as Binance have delisted non-compliant stablecoins for European customers to ensure adherence to these new rules. A recent report from Kaiko revealed a growing share of compliant stablecoins over the past year, indicating increased demand for transparency and regulated alternatives. Nevertheless, the report also indicated that non-compliant stablecoins still dominate the market, accounting for 88% of the total stablecoin volume.

FAQ: DWS’s Regulated Euro Stablecoin Initiative

For more up-to-date crypto news, you can follow Crypto Data Space.