Deutsche Bank AG has launched Project Dama 2, an asset servicing pilot that aims to address the regulatory challenges faced by banks when using public blockchains. The platform's layer two system connects to Ethereum, allowing for more affordable and efficient transactions. The use of public blockchains, however, poses risks to regulated banks, including uncertainty over transaction validation, potential fees to sanctioned entities, and unexpected changes to the blockchain. Project Dama 2 aims to satisfy these regulatory concerns by using two chains. This initiative is part of Singapore's Project Guardian, which involves 24 major financial institutions looking to tokenize assets via blockchain. Deutsche Bank sees blockchain as a solution to margin pressures in financial services, but there are still questions on how far banks should venture into the crypto world.



Other News from Today