May 23, 2024
Deutsche Bank
Latest Cryptocurrency News

Deutsche Bank Joins Singapore’s Asset Tokenization Initiative

Deutsche Bank, a prominent German multinational investment bank, has announced its collaboration with Singapore’s central bank, the Monetary Authority of Singapore (MAS), on asset tokenization.

The bank has joined MAS’s Project Guardian, an initiative aimed at exploring asset tokenization within wholesale funding markets and decentralized finance (DeFi) applications.

As part of this collaboration, Deutsche Bank will test an open architecture and interoperable blockchain platform designed to service tokenized and digital funds.

Additionally, the bank will propose protocol standards and identify optimal approaches to drive industry progress. Leading the initiative for Deutsche Bank is Boon-Hiong Chan, the Asia Pacific head of securities and technology. The bank will collaborate closely with Memento Blockchain, a platform that focuses on DeFi and digital asset management.

Advancing Digital Fund Management

Deutsche Bank and Memento Blockchain have a history of successful collaboration. They have completed a proof-of-concept project called Project DAMA (Digital Assets Management Access) in 2022 and 2023.

This new effort aims to introduce DAMA 2, an enhanced version of their initial project. The development will involve Interop Labs, the original developer of the Axelar network, a major interoperable blockchain.

Several significant cryptocurrency firms, including Ripple, have been working with the Axelar Foundation to enhance interoperability within their blockchain networks. Ripple, for instance, announced a collaboration with Axelar in February 2024 to tokenize real-world assets on the XRP Ledger, made interoperable through Axelar.

Future of Secure Blockchain Interoperability

Sergey Gorbunov, co-founder of Axelar and CEO of Interop Labs, highlighted the importance of secure blockchain interoperability. He stated that this is crucial for unlocking the trillion-dollar potential of asset tokenization. He also emphasized that Deutsche Bank and Project Guardian are leading the way in establishing open systems to enable this technology with Axelar playing a critical role in institutional adoption.

Moreover, Project Guardian, initiated by MAS in 2022, includes collaboration with financial market regulators from the UK, Switzerland, and Japan.

Project Guardian’s use cases according to the original announcement in 2022. Source: MAS

Deutsche Bank’s involvement in this project follows its recent report on stablecoins, which questioned the transparency of major issuers like Tether. In response, Tether criticized the report for lacking substantial evidence and concrete data. Above all, Tether’s USDT remains a dominant stablecoin in the cryptocurrency market. It has a total market value of nearly $111 billion, accounting for the largest share of trades.

Image from Flickr

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