Company Announcements

DWS, FLOW TRADERS AND GALAXY ANNOUNCE THE INTENTION TO LAUNCH ALLUNITY, TO ISSUE A REGULATED EUR-DENOMINATED STABLECOIN EXPECTED TO UNLOCK THE POTENTIAL OF THE ON-CHAIN ECONOMY AND ACCELERATE MASS ADOPTION OF TOKENIZED ASSETS

Amsterdam, the Netherlands - Flow Traders Ltd. (Euronext: FLOW) announces 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.

Alexander Höptner, designated CEO AllUnity: “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. Given today’s market developments, I am personally excited about the prospects of AllUnity and honoured 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.”

Stefan Hoops, CEO DWS: “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. We look forward to the collaboration with our partners and to enhancing investor access to digital assets for the future.”

Mike Kuehnel, CEO Flow Traders: “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, this partnership will introduce an unmatched proposition in the marketplace. 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.”

Mike Novogratz, CEO and Founder Galaxy: “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. 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."

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 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.

Designated CEO, Alexander Höptner bio
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.

Contact Details
Flow Traders Ltd.
Media
Laura Peijs
Phone:         +31 20 7996125
Email:        press@flowtraders.com

Investors
Eric Pan
Phone:         +31 20 7996180
Email:        investor.relations@flowtraders.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.

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.

Important Legal Information

This press release is prepared by Flow Traders Ltd. and is for information purposes only. It is not a recommendation to engage in investment activities and you must not rely on the content of this document when making any investment decisions. The information in this document does not constitute legal, tax, or investment advice and is not to be regarded as investor marketing or marketing of any security or financial instrument, or as an offer to buy or sell, or as a solicitation of any offer to buy or sell, securities or financial instruments.

The information and materials contained in this press release are provided ‘as is’ and Flow Traders Ltd. or any of its affiliates (“Flow Traders”) do not warrant the accuracy, adequacy or completeness of the information and materials and expressly disclaim liability for any errors or omissions. This press release is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal obligation on Flow Traders. All intellectual property rights, including trademarks, are those of their respective owners. All rights reserved. All proprietary rights and interest in or connected with this publication shall vest in Flow Traders. No part of it may be redistributed or reproduced without the prior written permission of Flow Traders.

This press release may include forward-looking statements, which are based on Flow Traders’ current expectations and projections about future events, and are not guarantees of future performance. Forward looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Words such as “may”, “will”, “would”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “could”, “hope”, “seek”, “plan”, “foresee”, “aim”, “objective”, “potential”, “goal” “strategy”, “target”, “continue” and similar expressions or their negatives are used to identify these forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of Flow Traders. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no undue reliance should be placed on any forward-looking statements. Forward-looking statements speak only as at the date at which they are made. Flow Traders expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law.

Financial objectives are internal objectives of Flow Traders to measure its operational performance and should not be read as indicating that Flow Traders is targeting such metrics for any particular fiscal year. Flow Traders’ ability to achieve these financial objectives is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Flow Traders’ control, and upon assumptions with respect to future business decisions that are subject to change. As a result, Flow Traders’ actual results may vary from these financial objectives, and those variations may be material.

Efficiencies are net, before tax and on a run-rate basis, i.e. taking into account the full-year impact of any measure to be undertaken before the end of the period mentioned. The expected operating efficiencies and cost savings were prepared on the basis of a number of assumptions, projections and estimates, many of which depend on factors that are beyond Flow Traders’ control. These assumptions, projections and estimates are inherently subject to significant uncertainties and actual results may differ, perhaps materially, from those projected. Flow Traders cannot provide any assurance that these assumptions are correct and that these projections and estimates will reflect Flow Traders’ actual results of operations.

By accepting this document you agree to the terms set out above. If you do not agree with the terms set out above please notify legal.amsterdam@nl.flowtraders.com immediately and delete or destroy this document.

 

Attachment

• DWS, FLOW TRADERS AND GALAXY ANNOUNCE THE INTENTION TO LAUNCH ALLUNITY