DWS said that the stablecoin coin will operate under the regulatory purview of Germany’s top financial regulator BaFin.
As per the latest industry reports, asset manager DWS is planning to launch the first regulated euro-denominated stablecoin by the next year of 2025. DWS CEO Stefan Hoops said that the firm will launch the new stablecoin under the joint venture firm dubbed AllUnity.
Speaking to Reuters, Hoops stated that the stablecoin coin will operate under the regulatory purview of Germany’s top financial regulator BaFin. He also said that the firm is expecting crypto investors to create early demand for the stablecoin with the interest over the stablecoin growing over time. Hoops told Reuters:
“By the medium term we expect wider demand, for instance from industrial companies working with ‘internet of things’ continuous payments.”
Asset manager DWS incorporated AllUnity last month in June, along with Flow Traders and Galaxy Digital.
The establishment of AllUnity marks a Germany-based initiative to develop a euro stablecoin. Headquartered in Frankfurt, AllUnity plans for its forthcoming stablecoin to be regulated by BaFin.
Europes Stablecoin Regulations
Germany’s top regulatory body Befin is yet to grant the e-money license to any stablecoin. Thus, DWS could be the first firm to secure the approval for the EUR-backed stablecoin.
This development comes in days after the EU-wide Markets in Crypto-Assets (MiCA) rules came into effect concerning the stablecoins. Some of the rule frameworks have also impacted the stablecoin market cap in Europe.
Few stablecoin issuers explicitly claim compliance. On July 1, Circle announced that its USDC and EURC stablecoins comply with MiCA, making it the first global stablecoin issuer to receive approval.
DWS, majority-owned by Deutsche Bank, manages 941 billion euros ($1 trillion). In April, it launched crypto exchange-traded commodities (ETCs). Much recently, the Bank of Italy issued new guidelines that align with the MiCa regulation with the goal of establishing a comprehensive regulatory framework for the digital assets sector within the EU.
The rules will address the implementation of the upcoming EU’s landmark crypto regulatory framework for digital assets while ensuring the smooth operation of the country’s payment system.
The stablecoin market is likely to expand going ahead with analysts expecting it to be a multi-trillion-dollar market by 2030.
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