Summary
Crypto firm Galaxy is partnering with asset management firm DWS and trading specialist Flow Traders to introduce a stablecoin called AllUnity. The stablecoin, which will be fully collateralized and denominated in euros, aims to accelerate the adoption of on-chain assets. Galaxy plans to launch AllUnity on public permissionless blockchains such as Ethereum and Solana. The companies are seeking to take advantage of the evolving regulatory framework in Europe, with the aim of launching the stablecoin within 12 to 18 months.
Key Points
1. Partnership for Stablecoin Launch: Galaxy, DWS, and Flow Traders are collaborating to introduce the stablecoin AllUnity, which is designed to promote the adoption of on-chain assets. This partnership aims to leverage the changing regulatory landscape in Europe to facilitate the launch of the stablecoin.
2. Collateralized and Denominated in Euros: AllUnity will be fully collateralized and denominated in euros. This ensures stability and provides a reliable asset for on-chain transactions. The stablecoin will be incorporated in Frankfurt, and the next step involves applying for an E-money license from the German financial regulator BaFin.
3. Launch on Public Permissionless Blockchains: AllUnity is planned to launch on public permissionless blockchains, including Ethereum and Solana. This allows for wider accessibility and interoperability with existing blockchain networks.
4. Growing Stablecoin Market: Stablecoins, such as Tether (USDT), USDC, and DAI, have a combined market capitalization of around $130 billion. AllUnity aims to contribute to the growth of the stablecoin market by providing a robust regulatory framework that enhances investor protection and market integrity.
5. Potential for Fractional Payments: DWS CEO Stefan Hoops highlights the potential for corporations with internet-of-things (IoT) businesses to use AllUnity for fractional payments. This opens up new possibilities for seamless and continuous transactions, enabling 24/7 functionality.
Importance to the Reader: The collaboration between Galaxy, DWS, and Flow Traders to launch AllUnity demonstrates the increasing interest and investment in stablecoins as a means of facilitating on-chain transactions. The proposed stablecoin aims to address the need for stability and reliability in the crypto ecosystem. Additionally, the partnership aligns with the evolving regulatory framework in Europe, which is paving the way for the adoption of digital currencies. This development has broader implications for the future of payment systems and the integration of traditional and digital finance ecosystems.