The platform aims to address regulatory concerns related to public blockchains by providing regulators with a more controlled network with hand-picked validators and monitoring tools.
Deutsche Bank is furthering its blockchain ambitions with a layer 2 platform called Dama 2, designed to address regulatory concerns surrounding the use of public blockchains. Built on Ethereum, the platform is part of a broader effort to integrate tokenized assets into the financial system.
Public blockchains like Ethereum have become a challenge for financial institutions due to concerns about potential interactions with transaction validators and sanctioned entities, said Boon Heong Chan, head of innovation for Asia Pacific at Deutsche Bank. This is said to be an issue. Dama 2 aims to reduce these risks by providing a more controlled network, allowing banks to hand-pick trusted validators and providing regulators with oversight tools to track the movement of funds. That's what I'm aiming for.
The initiative is part of Project Guardian, a joint initiative led by the Monetary Authority of Singapore that includes major financial firms such as JPMorgan Chase and DBS Group. With Dama 2 leveraging ZKsync technology, Deutsche Bank is paving the way for tokenized funds and hopes to roll out a minimum viable product next year, subject to regulatory approval.
