AllUnity is expected to unlock the potential
of the on-chain economy and
accelerate mass adoption of tokenized assets
LONDON, Dec. 13,
2023 /CNW/ - Galaxy (TSX: GLXY) has announced
today the intended formation of AllUnity, as part of a new
partnership between DWS, Flow Traders and Galaxy, whose mission is
to revolutionize the on-chain economy by issuing a fully
collateralized EUR-denominated stablecoin. AllUnity
will be regulated by BaFin, Germany's financial supervisory authority.
AllUnity's longer-term focus will be to accelerate mass market
adoption of digital assets and tokenization.
AllUnity's partners consist of three world-class firms with
significant market reach and experience in developing and
distributing leading financial products to investors in a
regulatory-compliant manner. The partnership will combine DWS'
strong portfolio management and product structuring capabilities,
Flow Traders' leading liquidity provisioning expertise and
connectivity in both traditional and digital assets globally, and
Galaxy's technical infrastructure and track record of delivering
innovative digital asset solutions to investors. As a result,
AllUnity will be well-positioned to deliver the leading regulated
EUR-denominated stablecoin for institutional,
corporate, and private user adoption. In addition, Galaxy's
wholly-owned subsidiary GK8 will license its tokenization and
custodial technology to support AllUnity in developing its
stablecoin.
AllUnity will launch during a period of increased regulatory
clarity in the digital assets space within the EU, following the
newly adopted Markets in Crypto Assets Regulation
(MiCAR). The introduction of MiCAR provides a harmonized legal
framework for stablecoins intended to result in greater protection
for all market participants. AllUnity will initiate the process of
applying for an E-money license with BaFin, with the intention of
launching the stablecoin in 12-18 months. The launch
of AllUnity is subject to certain conditions precedent, including
but not limited to the receipt of required approvals from BaFin and
competition authorities.
The partners intend to appoint Alexander Höptner as Chief
Executive Officer of AllUnity. They believe Alexander brings
distinct experience and vision to build and successfully lead the
business. His experience in developing crypto
products, expertise in broader traditional market structure, and
in-depth financial industry knowledge are key attributes that the
partners believe will help Alexander successfully bring this
business to market.
"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," said Alexander Höptner,
designated CEO, AllUnity. "Given today's market developments, I am
personally excited about the prospects of AllUnity and honored to
have been chosen as its designated CEO. In the coming period, we
will focus on building a strong team of talented
crypto, financial markets, technology, and regulation
experts to deliver on our mission."
"Digital currencies are the natural evolution of the world's
payment system, and Europe – a
region at the forefront of the exploration of safe, secure digital
money – is paving the way for this inevitable shift. 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," said
Mike Novogratz, CEO and Founder,
Galaxy. "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."
"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. For
instance, corporates with IoT (Internet of Things) businesses could
use our regulated EUR-denominated stablecoin to make
payments in fractions and 24/7 securely, and at their own
convenience," said Stefan Hoops,
CEO, DWS. "We look forward to the collaboration with our partners
and to enhancing investor access to digital assets for the
future."
"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," said
Mike Kuehnel, CEO, Flow Traders.
"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."
Notes to editors
- The creation of AllUnity is subject to certain conditions
precedent, including but not limited to the receipt of required
approvals from BaFin and competition authorities.
- AllUnity will be incorporated in Q1, 2024 and headquartered in
Frankfurt, Germany.
- It is envisaged that Alexander Höptner will formally become
AllUnity's CEO once incorporation of AllUnity has been
completed.
About AllUnity
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.
About Designated CEO Alexander
Höptner
It is envisaged that Alexander Höptner
will become the CEO of AllUnity. He will lead the development of
AllUnity, including obtaining the regulatory approvals to launch a
EUR-denominated stablecoin. Prior to this role,
Alexander served as Group CEO at 100x Group, the holding structure
for the BitMEX platform. Before that, Alexander 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 Alex'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.
About Galaxy
Galaxy (TSX: GLXY) is a digital asset and
blockchain leader providing access to the growing digital economy.
We serve a diversified client base, including institutions,
startups, and qualified individuals. Since 2018, Galaxy has been
building a holistic financial platform spanning three complementary
operating businesses: Global Markets, Asset Management, and Digital
Infrastructure Solutions. Our offerings include, amongst others,
trading, lending, strategic advisory services, institutional-grade
investment solutions, proprietary bitcoin mining and
hosting services, network validator services, and the development
of enterprise custodial technology. The company is headquartered in
New York City, with offices across
North America, Europe, and Asia.
Additional information about the Company's businesses and
products is available on www.galaxy.com.
About DWS Group
DWS Group (DWS) with EUR 860 billion
of assets under management (as of September
30, 2023) aspires to be one of the world's leading asset
managers. Building on more than 60 years of experience, it has a
reputation for excellence in Germany, Europe, the Americas, and Asia. DWS is recognized by clients globally as
a trusted source for integrated investment solutions, stability,
and innovation across a full spectrum of investment
disciplines.
We offer individuals and institutions access to our strong
investment capabilities across all major liquid and illiquid asset
classes as well as solutions aligned to growth trends. Our diverse
expertise in Active, Passive and Alternatives asset management
complements each other when creating targeted solutions for our
clients. Our expertise and on-the-ground knowledge of our
economists, research analysts and investment professionals are
brought together in one consistent global CIO View, giving
strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We
understand that, both as a firm as well as a trusted advisor to our
clients, we have an important role in helping navigate the
transition to a more sustainable future. With approximately 3,800
employees in offices all over the world, we are local while being
one global team. We are committed to acting on behalf of our
clients and investing with their best interests at heart so that
they can reach their financial goals, no matter what the future
holds. With our entrepreneurial, collaborative spirit, we work
every day to deliver outstanding investment results, in both good
and challenging times to build the best foundation for our clients'
financial future.
About Flow Traders
Flow Traders (Euronext: FLOW) is a
global trading firm providing liquidity in multiple asset classes,
covering all major exchanges and trading venues. Founded in 2004,
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. Flow Traders' role in financial markets is
to ensure the continuous availability of liquidity and enabling
investors to continue to buy or sell financial instruments under
all market circumstances, thereby ensuring markets remain resilient
and continue to function in an orderly manner. In addition to its
core trading and market making activities, Flow Traders has
established a strategic investment unit focused on fostering
innovation in global financial markets, aligned with the firm's
mission to bring greater transparency and efficiency to the
financial ecosystem. With nearly two decades of experience, Flow
Traders built a dedicated team of over 600 talented professionals,
located globally in all major financial hubs, contributing to the
firm's entrepreneurial culture, and delivering the company's
mission for financial markets.
Disclaimers
The TSX has neither approved nor
disapproved the contents of this press release.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
This release
contains certain forward-looking information and forward-looking
statements, as defined in applicable securities laws (collectively
referred to herein as "forward-looking statements"). These
forward-looking statements relate to the AllUnity's launch,
mission, focus and ability to deliver a leading regulated
EUR-denominated stablecoin and acceleration of the
Company's growth strategy. All statements other than statements of
historical fact are forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "budget", "scheduled",
"estimates", "continues", "forecasts", "projects", "predicts",
"intends", "anticipates" or "believes", "seeks" or variations of,
or the negatives of, such words and phrases, or state that certain
actions, events or results "may", "could", "would", "should",
"might" or "will" be taken, occur or be achieved. The
forward-looking statements contained in this release are based on
our current expectations and beliefs concerning future developments
and their potential effects on us taking into account information
currently available to us. There can be no assurance that future
developments affecting us will be those that we have anticipated.
Forward-looking statements involve known and unknown risks
uncertainties and other factors that may cause actual results to
differ materially from those anticipated in such forward-looking
statements. Inherent in forward-looking statements are risks,
uncertainties and other factors beyond the Company's ability to
predict or control. The forward-looking statements are subject to
the risk that AllUnity does not achieve the necessary regulatory
approvals to launch or has other unanticipated challenges impacting
its launch, incorporation and its ability to achieve its mission
and focus, including therefore, that the project does not impact
the Company's growth. They are also subject to the risks described
in the Risk Factors section of the Annual Information Form ("AIF")
dated March 28, 2023 of Galaxy
Digital Holdings Ltd. Factors that could cause outcomes to differ
materially from those described in such forward-looking statements
include, but are not limited to, global regulatory developments,
particularly those that related to Euro-denominated stablecoins,
the E-money license and BaFin; a decline in the digital asset
market or general economic conditions; a delay or failure in the
ability to launch or incorporate AllUnity and hire the necessary
team to achieve the launch; and changes in applicable law or
regulation. Readers are cautioned that such risk factors,
uncertainties and other factors are not exhaustive. Actual results
and developments are likely to differ, and may differ materially,
from those expressed or implied by the forward-looking statements
in this release. The forward-looking statements in this release are
applicable only as of the date of this release or as of the date
specified in the relevant forward-looking statement and the Company
does not intend, and does not assume any obligation, to update
these forward-looking statements, except as required by applicable
securities laws. Investors are cautioned that forward-looking
statements are not guarantees of future performance and are
inherently uncertain. Accordingly, investors are cautioned not to
put undue reliance on forward-looking statements.
SOURCE Galaxy Digital Holdings Ltd.