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In what could be furthering the market share of stablecoins in the crypto ecosystem, Deutsche Bank, along with other partners, is reportedly launching a euro-based stablecoin.
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Deutsche Bank’s Euro Stablecoin
According to a Bloomberg report, Deutsche Bank’s DWS Group, Netherlands based market maker Flow Traders, and crypto fund manager Galaxy Digital Holdings are in plans to launch a company to issue an euro-denominated stablecoin. The initiative is aimed at driving mainstream adoption of tokenized assets, the report said. The new company by the name ‘AllUnity’ is set to be operated from Frankfurt, Germany while efforts to gain regulatory approval are underway.
Currently, the stablecoin market is dominated by Tether USDt (USDT) with a total market cap of $90.65 billion and Circle’s (USDC) market cap of $24 billion.
Former BitMex CEO To Lead New Company AllUnity
The name of the stablecoin is yet to be known while the company, AllUnity, is set to apply for an e-money license with the local financial watchdog the Federal Financial Supervisory Authority (BaFin). AllUnity will reportedly be headed by Alexander Höptner, who was formerly the chief executive officer of crypto exchange BitMex.
The stablecoin will be fully backed by collaterals, the report said. This could be an important aspect in the stablecoin space owing to the criticism around lack of clarity on collateral and the funds to back the stablecoin operations. For example, Tether, the company behind USDT, had in December 2022 announced plans to minimize its loan exposure, after concerns were raised around the safety of stablecoins, in the context of the FTX collapse.
The company said it was focusing on maintaining transparency, accountability and operational eminence to safeguard itself from such calamities. Mike Novogratz’s Galaxy Digital, also had exposure to FTX.
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