3 months ago
Deutsche Bank is gathering a layer-2 blockchain based connected Ethereum to lick the regulatory hurdles fiscal institutions look utilizing nationalist blockchains, Bloomberg News reported on Dec. 17.
The platform, dubbed Project Dama 2, represents the German banking giant’s effort to harness blockchain technology’s imaginable portion minimizing risks associated with nationalist ledgers, which tin often inadvertently transact with sanctioned entities oregon criminals.
The project, unveiled successful November arsenic a pilot, is designed to streamline plus servicing. It leverages ZKsync’s zero-knowledge impervious (zkp) exertion to connection cheaper and much businesslike transactions.
Moreover, utilizing zkp volition alteration enhanced privateness and customization for organization users processing connected Deutsche Bank’s proprietary blockchain. Crypto firms Memento Blockchain and Interop Labs are aiding the platform’s development.
Notably, Project Dama 2 is portion of the Monetary Authority of Singapore’s Project Guardian, which signals a increasing involvement among accepted fiscal players successful blockchain-based plus servicing and tokenization solutions.
JPMorgan executed its archetypal transaction connected a nationalist blockchain successful precocious 2022, besides arsenic portion of Project Guardian, portion Visa is exploring the tokenization of fiat currencies for accepted banks.
Meanwhile, accepted concern giants specified arsenic BlackRock and Franklin Templeton person tokenized wealth funds with a combined marketplace headdress of implicit $1 billion.
TradFi leveraging blockchain
Public blockchains connection immense ratio for regulated lenders. Ethereum is the favored infrastructure by institutions, arsenic it dominates 81% of the tokenization of real-world assets (RWA).
However, the study pointed retired that these benefits travel with uncertainty implicit who validates transactions, the anticipation of transaction fees reaching sanctioned entities, and the hazard of unforeseen blockchain hard forks that could disrupt operations.
The solution recovered by Deutsche Bank was adding its ain layer-2 blockchain to the mix. Boon-Hiong Chan, Deutsche Bank’s Asia-Pacific manufacture applied innovation lead, stated:
“Using 2 chains, a fig of these regulatory concerns should beryllium capable to beryllium satisfied.”
As a result, Project Dama 2 connects to Ethereum portion allowing the slope to sidestep immoderate of the alleged risks inherent successful nationalist blockchains. By creating a curated database of transaction validators and offering tools to springiness regulators exclusive “super admin rights,” the slope hopes to supply a much unafraid and compliant blockchain experience.
The station Deutsche Bank to make Ethereum layer-2 blockchain to tackle TradFi compliance issues appeared archetypal connected CryptoSlate.
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