In a strategic initiative aimed at advancing the adoption of on-chain assets, major crypto firm Galaxy is teaming up with asset management giant DWS and trading specialist Flow Traders. The ambitious collaborative plan revolves around the introduction of a stablecoin named AllUnity. This will be fully collateralized and denominated in euros. While the forward-thinking project aims to capitalize on the growing regulatory landscape in Europe, its success hinges on securing various approvals.
Overview of the Partnership
The collaborative effort involving DWS, Flow Traders, and Galaxy was officially announced on Dec. 13, with the objective of launching a fully collateralized euro stablecoin. The entity, slated for incorporation in Frankfurt, plans to apply for an E-money license from the German financial regulator BaFin. However, this will be done in the next phase. Additionally, the goal is to launch the stablecoin within 12 to 18 months, subject to regulatory green lights.
Vision for AllUnity
The proposed stablecoin, AllUnity, is designed to operate on multiple public permissionless blockchains, including Ethereum and Solana. According to DWS CEO Stefan Hoops, the creation of AllUnity aims to bridge the gap between traditional and digital finance ecosystems. It provides a secure on-chain settlement infrastructure for institutional, corporate, and private use. Hoops further noted the potential for corporations with internet-of-things businesses. This was done in order to utilize AllUnity’s stablecoin for secure and fractional 24/7 payments.
Key Players and Contributions
Galaxy founder and CEO Novogratz noted the natural evolution of the world’s payment system. Here, digital currencies play a pivotal role. Novogratz highlighted Europe’s leading role in exploring safe and secure digital money. It is further paving the way for the inevitable shift towards digital currencies. The collaboration will leverage DWS’ portfolio management and product-structuring expertise, Flow Traders’ liquidity services and connectivity, and Galaxy’s technical infrastructure and digital asset solutions through its subsidiary GK8.
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Timeline and Regulatory Landscape
AllUnity aims to complete its business incorporation in early 2024, with the stablecoin launch expected 12 to 18 months after securing BaFin approval. The collaborators foresee an era of improving regulatory clarity in the European digital asset industry. It is citing expectations for more insights from the recently adopted Markets in Crypto Assets Regulations (MiCA), which provide a legal framework for stablecoins and other digital assets.
Additionally, the partnership between DWS, Flow Traders, and Galaxy signifies a proactive step toward boosting the digital asset ecosystem in Europe. The planned launch of AllUnity, a fully collateralized euro stablecoin, underscores the convergence of traditional finance and the digital frontier. As regulatory clarity in the European digital asset industry improves, the collaborative effort aims to provide a secure and efficient infrastructure for on-chain settlement. Furthermore, it will contribute to the ongoing evolution of the global payment landscape.
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