Points
- DWS plans to launch the first regulated euro-backed stablecoin in 2025.
- The stablecoin will be regulated under Germany’s financial regulator, BaFin.
- Crypto investors and industrial companies are expected to create early demand.
- The
stablecoin is part of a broader effort to enhance continuous payments and expand the digital currency ecosystem.
Hoops, a key figure at DWS, announced the company’s ambitious plan to launch the first regulated euro-backed stablecoin in 2025. This stablecoin will be fully regulated under Germany’s financial regulator, BaFin. DWS expects that early demand for the stablecoin will primarily come from crypto investors, but they also foresee growing interest from industrial companies involved in continuous payments through the Internet of Things （IoT）.
Strategic Collaboration and Market Impact
DWS has incorporated AllUnity with Flow Traders and Galaxy Digital in June, marking a significant step towards creating a robust framework for the stablecoin’s launch. The formation of AllUnity represents a Germany-based attempt to establish a euro-backed stablecoin, which will operate from Frankfurt and seek regulation from Germany’s Federal Financial Supervisory Authority （BaFin）.
This regulatory effort is notable because BaFin has not yet granted its e-money license regulation to any stablecoin. Reuters reported that DWS would be the first to receive such approval. The new stablecoin will benefit from the comprehensive regulatory oversight provided by BaFin, ensuring compliance with Germany’s stringent financial standards.
Market Dynamics and Adoption
The news of DWS’s stablecoin comes shortly after the EU-wide Markets in Crypto-Assets （MiCA） rules concerning stablecoins came into effect on June 30. These new rules have already impacted the stablecoin market cap in Europe, creating a favorable environment for DWS’s upcoming launch.
Few stablecoin issuers have explicitly claimed compliance with MiCA. However, Circle announced on July 1 that its USDC and EURC stablecoins are compliant with MiCA, positioning itself as the first global stablecoin issuer to gain approval. This development underscores the importance of regulatory compliance in the evolving digital currency landscape.
DWS, majority-owned by Deutsche Bank, manages 941 billion euros （$1 trillion） in assets. In April, DWS launched crypto exchange-traded commodities （ETCs）, further demonstrating its commitment to integrating digital assets into traditional financial frameworks.
Conclusion
The planned launch of the first regulated euro-backed stablecoin by DWS marks a significant milestone in the digital currency landscape. With regulatory oversight from BaFin and early demand from crypto investors and industrial companies, this stablecoin is poised to play a crucial role in the future of continuous payments and digital transactions in Europe.
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