Germany’s asset management firm DWS is making strides in the crypto space by planning to launch the first regulated euro stablecoin in the country. The firm aims to have the stablecoin live by 2025, offering benefits to digital asset investors and developers, as well as industrial applications.
DWS recently introduced a new company called AllUnity, which will be responsible for unveiling the euro-pegged stablecoin. The platform will be regulated by the Federal Financial Supervisory Authority (BaFin), ensuring compliance with regulatory standards.
The CEO of DWS, Stefan Hoops, expressed optimism about the future demand for the stablecoin, expecting interest from investors in digital assets in the short term and wider demand in the medium term, particularly from industrial companies involved in continuous payments through the ‘internet of things.’
This move by DWS comes at a pivotal time as the EU implements the Markets in Crypto-Assets (MiCA) regulation, which sets regulatory standards for stablecoins. Various issuers and providers, including Circle and Binance, have taken steps to align with the law by obtaining necessary licenses and approvals.
Circle recently became the first stablecoin issuer to secure approval with the Electronic Money Institution (EMI) license, while Binance made the decision to delist stablecoins that do not comply with the MiCA rules. Bitstamp also followed suit by delisting Euro Tether (EURT) in June.
Overall, DWS’s entry into the stablecoin market signifies a significant development in the crypto space, opening up new opportunities for investors and businesses alike. The launch of the euro stablecoin by 2025 will not only enhance the digital asset landscape but also contribute to the ongoing evolution of regulatory standards in the industry.