In conjunction with ZKsync technology, Deutsche Bank is currently in the process of creating a layer 2 blockchain solution on Ethereum.
According to a recent report from Bloomberg, Deutsche Bank, the largest bank in Germany, is utilizing ZKsync technology to create an Ethereum layer 2 network that will improve transaction efficacy and comply with financial regulations.
The objective of the initiative, which is a component of Project Dama 2 and is associated with Singapore’s Project Guardian, is to address critical concerns for regulated lenders that operate on public blockchains. These concerns include the unpredictability of hard forks, the risk of payments to sanctioned entities, and the presence of unknown transaction validators.
Boon-Hiong Chan, Head of APAC Securities Market and Technology Advocacy at Deutsche Bank, stated that the objective is to facilitate the safe and secure use of public blockchains by banks for a variety of financial services, all while resolving regulatory concerns.
He stated that the L2 solution will allow banks to establish a “more personalized list of validators” and grant regulators “super admin rights” to monitor fund movements.
In November, the bank disclosed testing versions of Project Dama 2, an asset-servicing prototype. Also anticipated are cost-effectiveness advantages associated with the integration of an L2 solution into Project Dama 2.
According to Chan, the implementation of two chains should alleviate several of these regulatory concerns. “You are no longer reliant on Layer 1 for comprehensive transaction records,” he emphasized.
Project Dama 2, which is a component of the Monetary Authority of Singapore’s Project Guardian, was developed in partnership with Memento Blockchain and Interop Labs, utilising ZKsync technology. This more extensive initiative entails the trial of blockchain technology for asset tokenization by 24 key financial institutions.
Subject to regulatory sanction, the bank intends to introduce a minimum viable product next year.
Deutsche Bank has recently formed a partnership with Crypto.com, a cryptocurrency exchange, to improve corporate financial services in the Asia-Pacific region. The collaboration, which was announced on December 10, will initially concentrate on the provision of banking capabilities in Singapore, Australia, and Hong Kong. Future expansion into Europe and the UK is anticipated.
The collaboration is a component of Crypto.com’s overarching global expansion strategy, which encompasses the introduction of new products by 2025, including a stablecoin and an ETF.
Wallets