DWS Launches New Firm to Create First German-Regulated Cryptocurrency

German asset management firm DWS has established a new company as part of its efforts to create the first German-regulated cryptocurrency, writes Finextra. Owned by Deutsche Bank, DWS revealed the launch of this new entity as a key move in their broader strategy to introduce a euro stablecoin next year. This initiative represents a major advancement for the European financial sector, given that DWS manages assets totaling €941 billion.

The cryptocurrency will be regulated by Germany’s Federal Financial Supervisory Authority (BaFin), positioning DWS to potentially become the first company to receive a German e-money license for a stablecoin. The newly established company, AllUnity, is a collaborative venture between DWS, Flow Traders, and Galaxy Digital, aimed at rolling out the new stablecoin.

Stefan Hoops, CEO of DWS, noted that the stablecoin is expected to attract interest from a diverse range of clients, including digital asset investors and industrial applications. “In the short term, we foresee demand from digital asset investors, but in the medium term, we anticipate broader demand, particularly from industrial companies engaged in 'internet of things' continuous payments,” Hoops stated.