Deutsche Bank is reportedly raising Series 2 under an asset servicing pilot project called Dama 2 as part of the lender's goal to clear regulatory hurdles for institutions that want to use public blockchains.
According to Bloomberg report published on December 18, German banking giant Deutsche Bank AG is currently building a “so-called” Series 2 for a public network. The lender hopes the project will shed light on the regulatory challenges faced by financial firms trying to involve the public. blockchain into their activities.
Last month Deutsche Bank released a test version of Project Dama 2, which includes Series 2 that is built on the Ethereum (ETH) network, the second largest cryptocurrency network by market capitalization after Bitcoin (BTC).
Deutsche Bank's Asia-Pacific business appointed head of innovation, Boon-Hiong Chan said that public blockchains like Ethereum are a threat to financial institutions entering the blockchain, as companies worry about inter -work with criminals or sanctioned organizations within the ecosystem.
This is because, according to Chan, institutions do not know “exactly who is validating the transactions” and whether transaction fees could end up in the pockets of licensed entities. There is also the risk of a “hard fork” in the ecosystem that could dramatically change the digital ledger.
“Using two chains, a number of these regulatory concerns should be satisfied,” Chan told Bloomberg, adding that the bank is still awaiting regulatory approval but is hopeful of the outcome. to be launched at least as soon as possible by next year.
Chan believes that the built-in Series 2 can pave the way for banks to explore new opportunities within public blockchains, allowing them to “list validators more special” reservation that handles digital asset transactions to earn rewards.
In addition, he said that regulators could be given “super administrative rights” that would allow them to monitor the movement of money within the blockchain to spot illegal transactions.
“You no longer rely on Tier 1 for detailed transaction records,” Chan said.
Project Dama 2 is part of an even larger initiative created by the Monetary Authority of Singapore called Project Guardian. Project Guardian brings together 24 leading financial firms that are exploring ways to use the blockchain to identify assets. However, the project has raised questions about how deeply banks are willing to get involved in the crypto field.
Dama 2 was born primarily from a collaboration with crypto companies Memento Blockchain and Interop Labs. The platform was built using ZKsync technology.
As early as May 2024, Deutsche Bank name he was currently testing an unnamed Ethereum-based platform. The bank said the platform would provide services based on tokenized money.
Deutsche Bank joined Project Guardian on May 14, aiming to test the possibility of asset tokenization together with other major banking companies such as JPMorgan Chase & Co., DBS Group, and Ant International among others.
