Unstoppable Finance to launch Europe’s first DeFi bank

German startup Unstoppable Finance announced the launch of Europe’s first fully regulated DeFi bank and stablecoin.

The project promises full backing of the reserves for the new “stablecoin,” as envisaged by EU law.

On 20 April the European Parliament approved regulations governing the crypto-asset market (MiCA). The new provisions will take effect in 2024.

Co-founder and CTO of Unstoppable Finance Peter Grosskopf said that the traditional banking system is far from stability, and the recent collapse of the financial sector proved “the need to rethink it from scratch.”

“With the advent of stablecoins, money has become programmable, transfers circulate around the clock in seconds, and they provide transparency of transactions. It is time to use this important innovation and rebuild the financial system the way we would build it today,” he explained.

According to Grosskopf, the euro-backed stablecoin will be classified as an “electronic money token” and will serve as a “bridge between traditional finance and the decentralised economy.”

The co-founder noted that, thanks to the DeFi bank, they will be able at any time to deposit funds into an account with the ЕЦБ to collateralise their “stablecoin” and other operations.

Currently, Unstoppable Finance is developing the non-custodial crypto wallet Ultimate with direct integration to yield protocols and decentralized exchanges. In August 2022 the project raised €12.5 million in a Series A financing round.

Earlier, in April 2023, the community criticised the digital euro issued by a French bank due to the features of the smart contract.