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December 13, 2023 - Digital Assets service provider Galaxy has announced today the intended formation of AllUnity, as part of a new partnership between Galaxy, asset manager DWS, and trading firm Flow Traders. AllUnity's mission is to revolutionise the on-chain economy by issuing a fully collateralised EUR-denominated stablecoin regulated by BaFin.
AllUnity will combine the strengths of its three partners - DWS' portfolio management and product structuring capabilities, Flow Traders' expertise in liquidity provision across traditional and digital assets, and Galaxy's technical infrastructure and experience delivering innovative digital asset solutions. As a result, AllUnity aims to deliver a leading regulated stablecoin for institutional, corporate and private adoption. DWS Group manages EUR 860 billion of assets. Flow Traders is one of the leading ETP market makers and has leveraged its expertise to expand into fixed income, commodities, FX and digital assets.
Galaxy's subsidiary GK8 will also license its tokenization and custody technology to support AllUnity's stablecoin development. AllUnity intends to apply for an e-money license from BaFin, with the goal of launching its stablecoin within 12-18 months.
The partners have designated Alexander Höptner to serve as AllUnity's CEO. Prior to this role, Höptner served as Group CEO at 100x Group, the holding structure for the BitMEX platform. Before that, he was with Börse Stuttgart GmbH and Euwax AG, where he served as CEO. The Börse Stuttgart exchange became a pioneer of digital asset trading under Höptner's leadership as the European Union's first traditional exchange operator to offer crypto markets. He previously held executive committee roles for Deutsche Börse AG, operator of the Frankfurt Stock Exchange, where he worked for 15 years before leaving to establish two start-ups for the trading of virtual assets on blockchain in the gaming industry.
Alexander Höptner, AllUnity's proposed CEO, commented on the project, "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."
Galaxy CEO Mike Novogratz stated, "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."
DWS CEO Stefan Hoops also added, "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...We look forward to the collaboration with our partners and to enhancing investor access to digital assets for the future."
Flow Traders CEO Mike Kuehnel also commented, “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."
Kuehnel continued, “This partnership will introduce an unmatched proposition in the marketplace by leveraging the vast opportunities presented with the improved regulatory landscape in Europe. 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.”
The launch of AllUnity is subject to receiving necessary regulatory approvals. AllUnity will be incorporated in Q1, 2024 and headquartered in Frankfurt, Germany.
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. AllUnity is backed by a set of industry-leading partners, DWS, Flow Traders and Galaxy, who will leverage their unique combination of expertise, market reach and infrastructure to bring to market a EUR-denominated stablecoin and drive the accelerated mass market adoption of tokenization.
