13 December 2023
Flow Traders announces the intended formation of AllUnity, as part of a new partnership between DWS, Flow Traders and Galaxy, whose mission is to revolutionize 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 world-class firms with significant market reach and experience in developing and distributing leading financial products to investors in a regulatory-compliant manner. The partnership will combine DWS’ strong portfolio management and product structuring capabilities, Flow Traders’ leading 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: “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 honoured 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.”
Stefan Hoops, CEO DWS: “Through the future creation of AllUnity, we will bridge the gap between the traditional and digital finance ecosystems to build a core infrastructure provider that facilitates secure on-chain settlement for institutional, corporate and private use. For instance, corporates with IoT (Internet of Things) businesses could use our regulated EUR-denominated stablecoin to make payments in fractions and 24/7 securely, and at their own convenience. We look forward to the collaboration with our partners and to enhancing investor access to digital assets for the future.”
Mike Kuehnel, CEO Flow Traders: "To truly democratize global financial markets, transparency, efficiency and accessibility needs to be fostered and embraced by all market participants. The tokenization of financial assets will play a significant role and contribute to improving financial markets as well as bringing a new level of maturity to the digital asset space. We are therefore thrilled to be launching AllUnity and the subsequent issuance of a EUR-denominated stablecoin in collaboration with DWS and Galaxy, this partnership will introduce an unmatched proposition in the marketplace. AllUnity will also expand Flow Traders’ strategy to accelerate financial market innovation and the diversification of our core trading capabilities as well as continuing to bring value to our stakeholders and the broader digital asset ecosystem.”
Mike Novogratz, CEO and Founder Galaxy: “Digital currencies are the natural evolution of the world’s payment system, and Europe – a region at the forefront of the exploration of safe, secure digital money – is paving the way for this inevitable shift. We are excited to collaborate with DWS and Flow Traders, two financial trailblazers and pioneers, to introduce an open, fungible, and interoperable EUR-denominated stablecoin that will enable investors across the world to gain access to the burgeoning digital asset space. Further, this partnership will accelerate our growth strategy, with our wholly-owned subsidiary GK8’s novel tokenization and custodial technology supporting AllUnity as it drives mass adoption of stablecoins in a relatively nascent segment."