Germany's largest lender is developing its own layer 2 blockchain on ethereum using zk sinc technology to address compliance challenges associated with using public blockchains in regulated finance The L2 solution that is part of the dama 2 project aims to improve transaction efficiency and ensure regulatory safeguards by integrating directly with ethereum according to bloomberg.
The dama 2 project is part of the monetary authority of singapore's guardian project that brings together 24 financial institutions to explore blockchain-based asset tokenization. The deutsche bank solution selects trusted validators and grants regulators special oversight to minimize risks such as interaction with sanctioned entities.
The platform is designed to align blockchain transparency with financial compliance requirements Deutsche Bank's move signals a push to utilize blockchain technology while addressing regulatory hurdles It could spur other institutions to adopt asset management or follow similar paths If successful, Deutsche Bank's approach may encourage financial institutions to engage more with decentralized networks, Bloomberg reported. While the bank hopes to launch the platform as a minimum viable product in 2025, regulatory approval remains the critical next step in determining the launch of its L2 blockchain.