Crypto News- In a move that could expand stablecoins’ footprint in the cryptocurrency landscape, Deutsche Bank, in collaboration with partners including DWS Group, Flow Traders, and Galaxy Digital Holdings, reportedly plans to launch a euro-based stablecoin.
Euro Stablecoin Initiative by Deutsche Bank and Partners
As reported by Bloomberg, the financial institutions mentioned are gearing up to establish a company named ‘AllUnity’ to issue a euro-denominated stablecoin. The primary goal is to drive mainstream adoption of tokenized assets. The new entity is slated to operate from Frankfurt, Germany, with ongoing efforts to secure regulatory approval.
Major Development: Deutsche Bank and Partners to Introduce Stablecoin Tied to the Euro
At present, the stablecoin market is predominantly led by Tether (USDT) with a total market cap of $90.65 billion and Circle’s (USDC) market cap of $24 billion.
Former BitMex CEO to Helm AllUnity
While the stablecoin’s name remains undisclosed, the company, AllUnity, intends to apply for an e-money license from the Federal Financial Supervisory Authority (BaFin), the local financial watchdog. Heading AllUnity will be Alexander Höptner, the former CEO of BitMex.
The stablecoin is set to be fully collateralized, addressing a significant concern in the stablecoin space regarding the transparency of collateral and funds backing stablecoin operations. Notably, Tether faced scrutiny in December 2022, leading to plans to reduce its loan exposure amid concerns raised after the FTX collapse.
Ensuring transparency, accountability, and operational excellence is a key focus for AllUnity to mitigate risks associated with unforeseen events. Galaxy Digital, led by Mike Novogratz, also had exposure to FTX, underlining the importance of robust risk management in the cryptocurrency industry.
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