Deutsche Bank-owned asset management firm DWS is gearing up to launch Germany’s first euro-denominated stablecoin, as reported by Reuters.
According to the report, DWS has established a new platform, which will be regulated by the Federal Financial Supervisory Authority (BaFin), to release the euro-pegged stablecoin by 2025.
DWS Launches AllUnity
Stefan Hoops, CEO of DWS, announced that the new entity tasked with launching the stablecoin is named AllUnity. In June this year, DWS teamed up with Flow Traders and Galaxy Digital to introduce AllUnity.
Although an official announcement is yet to be made, this initiative represents a significant step for DWS in the crypto sector. As one of Europe’s leading fund managers, DWS currently oversees over €941 billion ($1.02 billion) in global assets.
The introduction of this stablecoin is expected to benefit digital asset investors and developers, particularly in industrial applications.
“In the short term, we anticipate demand from investors in digital assets, but by the medium term, we foresee broader demand, such as from industrial companies working with ‘internet of things’ continuous payments,” Hoops stated.
Stablecoins and MiCA Regulation
DWS’s initiative comes as the EU progresses with the implementation of the Markets in Crypto-Assets (MiCA) regulation, effective from June 30. A key regulatory focus is on stablecoins, prompting issuers and providers to align with the new law, including obtaining necessary licenses and approvals.
Recently, USDC and EURC issuer Circle became the first stablecoin issuer to secure approval with the Electronic Money Institution (EMI) license. Conversely, Binance delisted stablecoins that failed to comply with MiCA rules, and Bitstamp removed Euro Tether (EURT) from its listings in June.
