German asset management company DWS has announced the launch of a new venture aimed at creating the first German-regulated cryptocurrency.
DWS, which is owned by Deutsche Bank, revealed this initiative as part of a larger strategy to introduce a euro stablecoin in the coming year. This move represents a significant advancement for the European financial sector, particularly given that DWS manages assets totaling €941 billion.
The cryptocurrency will be regulated by Germany’s Federal Financial Supervisory Authority (BaFin), with DWS seeking to become the first company to obtain a German e-money license for a stablecoin.
The newly established company, AllUnity, is a joint effort between DWS, Flow Traders, and Galaxy Digital, collaborating to develop the new stablecoin.
Stefan Hoops, CEO of DWS, expressed that the stablecoin is likely to attract interest from a diverse range of clients, including those involved in digital asset investments as well as manufacturers utilizing continuous payments for ‘internet of things’ applications. “In the short term, we expect demand from investors in digital assets, but by the medium term, we anticipate broader interest from companies in various industries,” Hoops stated.