rewrite this content using a minimum of 1000 words and keep HTML tags
Deutsche Bank is reportedly creating a layer-2 (L2)
blockchain solution on Ethereum using ZKsync technology. The initiative aims to
address compliance challenges in using public blockchains within regulated
financial systems, according to Bloomberg.
The L2 solution is part of Project Dama 2, designed to
enhance transaction efficiency and incorporate regulatory safeguards. It will
integrate with Ethereum while maintaining alignment with financial compliance
requirements.
Project Dama 2 and Compliance
Project Dama 2 is linked to the Monetary Authority of Singapore’s Project
Guardian, which involves 24 financial institutions exploring blockchain-based
asset tokenization. Deutsche Bank’s approach curates a network of trusted
validators and grants regulators oversight capabilities to reduce risks, such
as interactions with sanctioned entities.
The initiative reflects a broader effort by Deutsche Bank to
leverage blockchain technology while addressing regulatory barriers. Success
could encourage other financial institutions to explore blockchain applications
in asset servicing or adopt similar strategies.
🚀 Germany’s largest lender is building an Ethereum L2 using ZKsync to tackle compliance in regulated finance. If successful, this could pave the way for more institutions to embrace decentralized networks. 🌐💡https://t.co/EVNEBaH5lF
— SWFT Blockchain (@SwftCoin) December 18, 2024
Deutsche Bank Targets 2025 Launch
A minimum viable product for the platform is targeted for
release in 2025, pending regulatory approval. The next steps will be critical
in determining the project’s viability and potential launch timeline.
L2 blockchains, which operate atop primary layer-1 networks
like Ethereum, enable faster and more cost-effective transactions. They also
offer tools for regulatory compliance, including “super admin
rights,” allowing financial regulators to audit and monitor activities
when needed.
Separately, on December 10, Deutsche Bank partnered with
Crypto.com to offer corporate banking services across Asia-Pacific markets.
These services include fiat-to-crypto exchanges and cross-border trading
solutions.
Deutsche Bank has also indicated plans for partnerships in
the United Kingdom and other European regions, signalling a continued focus on
integrating blockchain into its global operations.
This article was written by Tareq Sikder at www.financemagnates.com. and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
Source link
