Galaxy (TSX: GLXY) has announced the intended formation of AllUnity, as part of a new partnership between DWS, Flow Traders and Galaxy, whose mission is to enhance the on-chain economy by issuing a fully collateralized EUR-denominated stablecoin.
AllUnity will be regulated “by BaFin, Germany‘s financial supervisory authority. AllUnity’s longer-term focus will be to accelerate mass market adoption of digital assets and tokenization.”
AllUnity’s partners consist of three firms “with significant market reach and experience in developing and distributing leading financial products to investors in a regulatory-compliant manner.”
The partnership will reportedly “combine DWS’ strong portfolio management and product structuring capabilities, Flow Traders’ liquidity provisioning expertise and connectivity in both traditional and digital assets globally, and Galaxy’s technical infrastructure and track record of delivering innovative digital asset solutions to investors.”
As a result, AllUnity will be well-positioned “to deliver the leading regulated EUR-denominated stablecoin for institutional, corporate, and private user adoption. In addition, Galaxy’s wholly-owned subsidiary GK8 will license its tokenization and custodial technology to support AllUnity in developing its stablecoin.”
AllUnity will launch during “a period of increased regulatory clarity in the digital assets space within the EU, following the newly adopted Markets in Crypto Assets Regulation (MiCAR).”
The introduction of MiCAR “provides a harmonized legal framework for stablecoins intended to result in greater protection for all market participants. AllUnity will initiate the process of applying for an E-money license with BaFin, with the intention of launching the stablecoin in 12-18 months.”
The launch of AllUnity is subject “to certain conditions precedent, including but not limited to the receipt of required approvals from BaFin and competition authorities.”
The partners intend to “appoint Alexander Höptner as Chief Executive Officer of AllUnity.”
They believe Alexander brings distinct experience and vision “to build and successfully lead the business.”
His experience in “developing crypto products, expertise in broader traditional market structure, and in-depth financial industry knowledge are key attributes that the partners believe will help Alexander successfully bring this business to market.”
Alexander Höptner, designated CEO, AllUnity said:
“The envisaged partnership between DWS, Flow Traders and Galaxy is unique. Their market reach and expertise will enable AllUnity to develop a go-to-market strategy for a viable EUR-denominated stablecoin in order to advance the on-chain economy. AllUnity will also be able to leverage MiCAR, which we believe will contribute to growing the stablecoin market as it provides a robust regulatory framework that enhances investor protection and market integrity. Given today’s market developments, I am personally excited about the prospects of AllUnity and honored to have been chosen as its designated CEO. In the coming period, we will focus on building a strong team of talented crypto, financial markets, technology, and regulation experts to deliver on our mission.”
The creation of AllUnity is subject “to certain conditions precedent, including but not limited to the receipt of required approvals from BaFin and competition authorities.”
AllUnity will be incorporated “in Q1, 2024 and headquartered in Frankfurt, Germany.”
It is envisaged that Alexander Höptner will “formally become AllUnity’s CEO once incorporation of AllUnity has been completed.”
AllUnity will be a financial infrastructure provider, “with the mission to launch the leading regulated EUR-denominated stablecoin to unlock greater institutional adoption of tokenized assets.”
AllUnity also seeks to “bridge the Decentralized Finance and Traditional Finance ecosystems and enable market participants to access the developing on-chain economy.”