Deutsche Bank builds L2 blockchain on Ethereum: Bloomberg
Deutsche Bank is developing a layer-2 (L2) blockchain on Ethereum using ZKsync technology to tackle compliance issues in regulated finance. This initiative, part of Project Dama 2 under Singapore's Project Guardian, aims to enhance transaction efficiency and ensure regulatory safeguards by integrating with Ethereum. The L2 solution will feature trusted validators and allow regulators special oversight to mitigate risks, promoting blockchain transparency alongside financial compliance. The bank plans to launch a minimum viable product by 2025, pending regulatory approval. L2 blockchains facilitate faster, cheaper transactions and provide tools for regulators to monitor activities. Additionally, Deutsche Bank has partnered with Crypto.com to offer corporate banking services in the Asia-Pacific region, including fiat-to-crypto exchange and cross-border trading. Future partnerships in the UK and Europe are anticipated.
