Deutsche Bank Forms New Alliance for Stablecoin Issuance

The alliance will see the formation of euro-denominated stablecoin offering entity, catering to institutional, corporate, and private investors.

Deutsche Bank being handed a stablecoin.
Created by Kornelija Poderskytė from DailyCoin
  • Deutsche Bank’s DWS has partnered with two financial institutions.
  • The trio will form a stablecoin coin offering firm.
  • Several traditional financial institutions have ventured into the cryptocurrency industry this year.

The upswing of the cryptocurrency industry has seen an influx of traditional financial institutions seeking to capitalize on its benefits. In 2023, major banking and investment institutions ventured into the sector, offering assets such as Bitcoin, Ethereum, and stablecoins to retail and institutional investors. 

Deutsche Bank-owned asset management firm DWS Group joins the ranks, which is now set to offer stablecoins under a new partnership.

DWS, Flow Traders, and Galaxy Unite for Euro-Backed Stablecoin

On December 13, DWS announced its partnership with Netherlands-based market maker Flow Traders Ltd and digital asset firm Galaxy Digital Holdings to establish AllUnity.


AllUnity will offer a range of crypto services, focusing on a euro-denominated stablecoin issuance to institutional, corporate, and private investors, leveraging the strong core capabilities of each partner.

Based in Frankfurt, Germany, AllUnity will apply for the E-money license with the German financial authority BaFin to ensure regulatory compliance measures within the region. The firm will commence operations in the first quarter of 2024 but will only roll out its stablecoin upon necessary license acquisition.

Regarding leadership, the firm will be led by former crypto exchange BitMex head Alexander Höptner, who emphasized the importance of collaboration in expanding the stablecoin market.


“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,” he said.

DWS Group is also reportedly making strides towards establishing spot exchange-traded funds for the European financial market, aligning with the growing anticipation in the United States.

TradFi Institutions Leveraging Crypto ETFs

BlackRock, Grayscale, and Fidelity Investments have been all the buzz in the crypto industry with their spot ETF applications, seeking a regulatory nod from the Securities and Exchange Commission (SEC).

While the commission is yet to decide its stance on the proposals, the potential benefits of spot ETFs as a more ‘legitimate’ way to invest in the crypto sector have heightened investor expectations.

VanEck, another asset management firm, recently updated its Bitcoin Trust application with a ‘HODL’ ticker while awaiting the commission’s decision on its proposal to offer exchange-traded funds.

Other institutions, including Hashdex and Bitwise, are also in the race for spot ETFs.

On the Flipside

Why This Matters 

DWS, Flow Traders, and Galaxy are three world-class firms with significant market reach, and their entry into the crypto industry has the potential to accelerate the mass adoption of digital assets.

Read to learn more on spot ETF application in the U.S:
What a Bitcoin Spot ETF Approval Could Signify for Users

Uniswap is coming to Bitcoin to exchange accessibility. Read more:
Uniswap Charges Accessibility With Rootstock Integration 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.