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Deutsche Bank is tackling the regulatory challenges that conventional financial institutions encounter when engaging with public blockchain networks.
Deutsche Bank AG, the largest financial institution in Germany, is exploring methods to incorporate public blockchains while addressing potential regulatory issues. The organization seeks to mitigate risks such as unintentional transactions with sanctioned individuals or entities involved in illegal activities, as reported by Bloomberg.
According to Bloomberg, Deutsche Bank initiated Project Dama 2 in early November, a pilot program centered on tokenized assets. This platform, which utilizes ZKsync technology, is backed by technical collaborators Memento Blockchain and Interop Labs.
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Boon-Hiong Chan, Deutsche Bank’s Lead of Applied Innovation, stated that Project Dama 2 employs a Layer 2 solution based on the Ethereum blockchain. The implementation of L2 protocols reduces risks related to unexpected hard forks on the mainnet, maintains control over validator lists to prevent engagement with undesirable counterparties, and provides regulators with adequate oversight of fund transactions.
This strategy is designed to allow traditional finance (TradFi) entities to take advantage of Web3 technologies within the financial industry while reducing related risks. As noted by Bloomberg, Deutsche Bank intends to unveil a minimum viable product (MVP) for Project Dama 2 in 2025.
“FinTech innovators must start paying attention to the potential of smart contracts and blockchain if they want to develop cutting-edge business solutions,” remarked Max Krupyshev, CEO of CryptoProcessing.com, during the Purpose Driven FinTech podcast.
Deutsche Bank’s research is part of Project Guardian, an initiative spearheaded by the Monetary Authority of Singapore (MAS). The bank became involved in the initiative in May 2024 to investigate public blockchain networks for managing tokenized and digital assets in regulated financial markets.
Сообщение Deutsche Bank Explores Public Blockchains for TradFi Applications появились сначала на CoinsPaid Media.
