Connect with us

Crypto World

Germany’s AllUnity issues regulated stablecoin tied to safe haven Swiss franc

Published

on

Germany's AllUnity issues regulated stablecoin tied to safe haven Swiss franc

AllUnity, a joint venture between DWS, Galaxy, and Flow Traders, has expanded its stablecoin lineup with a new token pegged to the Swiss franc, which has emerged as a haven darling for major banks and analysts.

The BaFin-regulated e-money institute has unveiled CHFAU, which is backed 1:1 by Swiss franc reserves, in response to institutional demand for regulated digital CHF for payments, settlements, and treasury operations.

It debuts on the Ethereum blockchain as an ERC-20 token, with plans to expand to other networks later this year.

“In response to strong demand for a compliant digital Swiss Franc, we progressed from concept to launch in a matter of months, demonstrating the strength and scalability of AllUnity’s multicurrency platform,” Alexander Höptner, CEO of AllUnity, said in a press release shared with CoinDesk.

Advertisement

“This milestone is just the start of a broader transformation in how global liquidity moves,” said.

The debut is a sign of growing investor demand for stablecoins pegged to fiat currencies beyond the U.S. dollar. Last year, AllUnity debuted the EUR-stablecoin, while several other firms have issued tokens pegged to other fiat currencies such as JPY.

The debut signals surging demand for stablecoins pegged to fiat currencies beyond the dollar. Last year, AllUnity launched its EUR-pegged token, joining others that have issued JPY-tied alternatives. The stablecoin market has exploded since 2020, hitting $310 billion in combined value, with dollar-pegged tokens in pole position.

Safe haven CHF

Prospects for CHF-linked assets look bright as the currency is gaining notoriety as a better haven currency than the widely popular Japanese yen.

Advertisement

A safe haven currency is a stable, liquid currency that investors seek to hold during periods of economic uncertainty, political turmoil, or market volatility to protect their capital.

“If you’re a fiscal basket case, markets weaken your currency and push up government bond yields. Japan and Switzerland are polar opposites: Japan is a basket case, Switzerland is a massive safe haven,” Economist Robin Brooks said on X, echoing what Bannockburn Global Forex’s Chief Market Strategist Marc Chandler told CoinDesk last year.

Investment banking giant Morgan Stanley has compared the Swiss franc to gold, calling for a 17% appreciation against the U.S. dollar.

“CHF is an overlooked, under appreciated asset safe haven asset that looks set to appreciate more substantially and speedily than investors think and markets anticipate,” the bank said this week.

Advertisement

Goldman and Bank of America revealed a bias for franc over yen as haven currency in September last year.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Judge Blocks Binance Bid to Force US Crypto Claims into Arbitration

Published

on

Legislation, New York, United States, Cryptocurrency Exchange, Binance

A United States federal judge ruled that Binance cannot force a group of US customers to arbitrate claims over losses on crypto tokens they bought on its global platform before Feb. 20, 2019, keeping a major class action in open court.

The decision on Thursday by District Judge Andrew Carter Jr. in the Southern District of New York held that those claims were not bound by Binance.com’s 2019 arbitration clause because users lacked sufficient notice when the company unilaterally shifted its terms of use away from the 2017 version, which contained no arbitration or class action waiver provisions.

According to the judge, Binance relied on a general change‑of‑terms clause and the posting of updated 2019 terms on its website, and there was no evidence that the exchange provided any individual notice or formally “announced” the new arbitration provision to users.

Carter found that Binance’s “new world” rhetoric about operating in a decentralized manner did not change the basic contract law analysis for internet‑based agreements.

Advertisement
Legislation, New York, United States, Cryptocurrency Exchange, Binance
Williams vs. Binance. Source: CourtListener

He concluded that the 2019 arbitration clause could not be applied retroactively to claims that arose before its Feb. 20 effective date, because the contract never clearly said it would cover earlier conduct.

Related: US senator launches probe into Binance over Iran, Russia sanctions claims

Carter also held that a purported US class action waiver embedded in a section heading of the 2019 terms was unenforceable in federal court because the contract never actually sets out the terms of any such waiver and had to be interpreted narrowly against Binance as the drafter.

​​Binance says post‑2019 claims already dismissed

The case, Williams v. Binance, is a proposed class action brought by five US investors from California, Nevada and Texas who claim that Binance and founder Changpeng Zhao (CZ) illegally sold unregistered securities on Binance.com and failed to register as a broker‑dealer.

The case was previously dismissed in 2022 before the Second Circuit revived the investors’ claims in 2024, sending the dispute back to Carter’s court.

Advertisement

In a statement to Cointelegraph, a Binance spokesperson said that “in response to our motion on this issue plaintiffs voluntarily and correctly dismissed all claims that accrued on or after Feb. 20, 2019.” They added that Binance would “vigorously defend the limited claims that remain in this meritless case.”

The remaining claims will now proceed in a federal US court rather than private arbitration in Singapore, as judges, rather than arbitrators, assess whether crypto platforms can rely on unilaterally updated online terms to limit investor lawsuits.