At the heart of the turmoil in the banking sector in Europe and the United States, the German fintech startup, Unstoppable Finance, is preparing to launch a “DeFi-native” bank. This new bank will allow users to access a multitude of services offered by traditional banks. And that’s not all ! Unstoppable Finance has also announced plans to create its own euro-backed stablecoin, using funds kept at the European Central Bank.
A “DeFi-Native” bank soon to be launched in Europe
In the heart of winter, the European banking market is about to experience a major change. As the banking crisis rages across Europe and the US, Berlin-based fintech startup Unstoppable Finance is gearing up to launch a humorous and courageous DeFi-native bank.
Indeed, the fintech startup, behind the Ultimate self-custodian wallet, has announcement in a blog post published this Tuesday that it was preparing to launch a first bank ” DeFi-native able to offer a full range of traditional banking services. This bank will be regulated in Europe.
The startup has also indicated that it will issue a stablecoin backed by the euro, thus creating a link between decentralized finance and traditional finance.
“ Today, the banking system still operates largely on legacy rails. Money does not circulate in real time. With the advent of stablecoins, money has become programmable, settling in seconds around the clock and providing transparency in transaction records said Peter Grosskopf, co-founder and CTO of Unstoppable Finance.
Referring to the recent incident with the USDC, which saw part of its reserves locked up in Silicon Valley Bank, co-founder Grosskopf assured that the reserves of the European Central Bank (ECB) will support the stablecoin. Thus, he will be able to avoid the fate reserved for Circle, which kept its reserves in “several banks“.
Unlike other stablecoin issuers, Unstoppable Finance positions itself as a bank in its own right, offering a wide range of banking and financial services on both traditional and DeFi lanes.
“DeFI banking arm to ensure stablecoin is fully reserve-backed as required by new Brussels legislation”, told Decrypt the co-founder of Unstoppable Finance.
Unstoppable Finance, created in 2021, has as its very first initiative the creation of the hot wallet “ Ultimate Challenge“. The latter allows smartphone owners to interact with the Ethereum and Solana protocols.
The announcement comes days after news of the passage of the EU Crypto Asset Markets Bill MiCA, which aims to regulate the cryptocurrency industry in the 27 countries of the European Union.
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