Deutsche Bank to Launch Euro-Based Stablecoin
Deutsche Bank, alongside its partners, is reportedly set to introduce a euro-based stablecoin, a move that could expand stablecoins' presence within the crypto market.
As per a report by Bloomberg, Deutsche Bank’s DWS Group, along with Flow Traders based in the Netherlands and crypto fund manager Galaxy Digital Holdings, are in the process of establishing a company to launch a stablecoin denominated in euros. The primary goal behind this initiative is to encourage wider adoption of tokenized assets, with the newly formed entity named ‘AllUnity’ expected to operate from Frankfurt, Germany, pending regulatory approvals.
Presently, the stablecoin landscape is largely dominated by Tether (USDT) with a market cap of $90.65 billion and Circle’s USDC valued at $24 billion.
The stablecoin’s specific name remains undisclosed, while AllUnity aims to seek an e-money license from the local financial regulator, the Federal Financial Supervisory Authority (BaFin). Notably, Alexander Höptner, formerly the CEO of BitMex, is set to lead AllUnity.
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Reports indicate that the stablecoin will be fully collateralized, a crucial aspect given previous criticisms regarding transparency and adequate backing in stablecoin operations. For instance, concerns over the safety of stablecoins were raised in connection to the FTX collapse, prompting Tether to announce plans in December 2022 to reduce its loan exposure.
Emphasizing transparency, accountability, and operational excellence, the company aims to fortify itself against potential crises. Notably, Mike Novogratz’s Galaxy Digital also had exposure to FTX during this period.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
