Deutsche Bank has made headlines in the crypto world with a significant development regarding stablecoins, which belong to the altcoin class and have the potential to increase market share. Germany’s largest bank is preparing to launch a Euro-indexed stablecoin in collaboration with other partners.
According to Bloomberg, Deutsche Bank’s DWS Group will establish a new company with the Netherlands-based market maker Flow Traders and the cryptocurrency investment firm Galaxy Digital to facilitate the mainstream adoption of tokenized assets through a Euro-indexed stablecoin. The planned new company ‘AllUnity’ will operate in Frankfurt, Germany, and the process of obtaining regulatory approval for the company is ongoing.
Currently, the stablecoin market is dominated by Tether‘s USDT, an American dollar-indexed stablecoin, with a market value of $90.65 billion. Right after USDT, Circle’s USD Coin (USDC), also indexed to the American dollar, is in place.
According to Bloomberg’s sources, Deutsche Bank and its partners are preparing to apply for an e-money license from the German Federal Financial Supervisory Authority (BaFin) for AllUnity. Furthermore, it is indicated that the leadership of AllUnity will be taken by Alexander Höptner, who previously served as the CEO of the cryptocurrency exchange BitMex.
It is emphasized that the stablecoin will be fully collateralized and that the company will focus on transparency, accountability, and operational excellence to protect against potential disasters. Among the partners Deutsche Bank is working with to launch a Euro-supported stablecoin is Galaxy Digital, which was affected by the collapse of FTX.