A Berlin-based fintech startup, Unstoppable Finance, is making history as it prepares to launch Europe’s first-ever compliant “DeFi-native bank” alongside a fiat-backed Euro-pegged stablecoin, following the guidance of the EU’s Markets in Crypto Assets (MiCA) bill.
Unstoppable Finance CTO’s Official Statement
In a recent interview with Decrypt, Unstoppable Finance co-founder and CTO Peter Grosskopf emphasized the importance of ensuring that the stablecoin has underlying assets. He guaranteed that the DeFi banking arm of the company would ensure full backing of the stablecoin with reserves in compliance with the new legislation from Brussels.
Users can seamlessly interact with Ethereum and Solana protocols through Unstoppable Finance’s Ultimate DeFi wallet, which provides a user-friendly and accessible interface. Likewise, they can manage self-custody assets and trade cryptocurrency by simply using their smartphones.
The Team Behind Unstoppable Finance
Grosskopf mentioned during the conversation that he was also a part of the founding team and he has served as CTO of Solarisbank, which was the first tech company to obtain a German digital banking license seven years ago. His valuable experience in the industry is seen to primarily contribute to the success of the upcoming DeFi bank’s endeavors.
Additionally, the Unstoppable Finance team is renowned for launching Germany’s first regulated crypto exchange, Börse Stuttgart Digital Exchange (BSDEX) according to the source. The trio behind the startup, including Maximillian von Wallenberg-Pachaly and Omid Aladini, founded the company in 2021.
Stablecoin Classified as an “E-Money Token”
Unstoppable Finance’s stablecoin is classified as an “e-money token” by the law. This means that it’s a blockchain-based stablecoin that ties its value to the fiat currency that it refers to.
ECB Account for Maximum Stability
Grosskopf raised the recent liquidity crises experienced by major banks such as Silicon Valley Bank, Signature Bank, Silvergate, and Credit Suisse earlier this year. He underscored how this turmoil briefly dislodged Circle’s native stablecoin USDC since the company had some of its reserves spread out across different bank accounts.
Unstoppable’s DeFi bank ensures the stablecoin is fully backed by reserves, guaranteeing the stablecoin’s stability by depositing as much money as possible into a European Central Bank (ECB) account. Grosskopf stated that the team trusts fiat as the most stable form of money today, making it not dependent on the risk management of the bank.
Date of Launch
When asked about the timeline for the launch of the bank, an Unstoppable Finance spokesperson pointed out that there’s no clear deadline yet. However, they plan to launch the bank as soon as possible, depending on how fast they can obtain all the necessary licenses.
Unstoppable Finance’s upcoming launch of Europe’s first compliant DeFi-native bank, along with a fiat-backed Euro-pegged stablecoin, is a game-changer in the cryptocurrency industry. With the guidance of the EU’s MiCA bill, the company’s stablecoin is classified as an “e-money token,” ensuring that it is fully backed by reserves to avoid any liquidity crises. Likewise, Unstoppable Finance’s CTO Peter Grosskopf’s experience as part of the founding team and CTO of Solarisbank, the first tech company to obtain a German digital banking license seven years ago, adds to the company’s leverage in the market.
Unstoppable Finance’s Ultimate DeFi wallet offers users the convenience of interacting with Ethereum and Solana protocols, self-custody assets, and trading cryptos from their smartphones. The stablecoin’s full backing and stability guarantee also provides significant benefits to users.
The launch of Europe’s first compliant DeFi-native bank is a significant benefit to the crypto market as a whole, too. It paves the way for more companies to embrace the regulations set by the EU’s MiCA bill and bring more legitimacy to the crypto industry.
While there is still no clear timeline for the launch of Unstoppable Finance’s DeFi bank, the company aims to obtain all the necessary licenses as soon as possible. With the promise of a fully backed stablecoin and a DeFi-native bank compliant with new legislation, Unstoppable Finance is a company to watch in the cryptocurrency space.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.