Deutsche Bank to develop Ethereum layer-2 blockchain to tackle TradFi compliance issues
Deutsche Bank is developing a layer-2 blockchain, Project Dama 2, based on Ethereum to address regulatory challenges faced by financial institutions using public blockchains. The project aims to streamline asset servicing while minimizing risks associated with public ledgers, such as inadvertent transactions with sanctioned entities. It utilizes ZKsync’s zero-knowledge proof technology for cost-effective and efficient transactions, enhancing privacy and customization for institutional users. Project Dama 2 is part of Singapore's Project Guardian, reflecting increased interest in blockchain solutions among traditional finance players. Ethereum is preferred for its efficiency, dominating 81% of real-world asset tokenization. Deutsche Bank's approach includes a curated list of transaction validators and tools for regulators to maintain compliance and security.
