- After participating in Project Guardian, a project by the Monetary Authority of Singapore, Deutsche Bank is the most recent international financial institution to commend tokenization.
The most recent major financial institution to join the tokenization trend is Deutsche Bank, a multinational bank with $973.4 billion in assets.
Deutsche Bank joined the Monetary Authority of Singapore’s Project Guardian, a tokenization program, on May 14. The Digital Assets Management Access (DAMA) project, which investigated the issuance and transfer of tokens on the Ethereum blockchain, will have a follow-up launched by Deutsche Bank in 2023.
Coin Shastra spoke with Boon-Hiong Chan, Deutsche Bank’s Asia Pacific Head of Securities & Technology Advocacy, who stated that the banking industry must “future-proof” itself by adopting tokenization and remaining at the vanguard of web3 adoption.
According to Chan, maintaining a leading position in relevant innovation is essential to future-proofing our sector. To promote acceptance and encourage innovation, asset servicers such as Deutsche Bank will need to be able to address the many chains that asset managers are likely to employ for tokenization.
The announcement coincides with a growing number of the biggest financial institutions in the world beginning to dabble in on-chain financing.
Chan went on, “Tokenization of assets and funds has significant potential for the financial markets.” We look forward to helping the asset and wealth management industries advance via cooperation and a deeper comprehension of the cutting-edge digital ways to represent assets.
Leading credit rating company S&P Global Rankings stated in a research earlier this week that tokenization has the potential to completely transform the asset management sector by increasing efficiency.
Recently, the Cross-Chain Interoperability Protocol (CCIP) from Chainlink has been essential in enabling enterprise adoptions of tokenization through critical infrastructure. In recent months, ANZ Bank, BNY Mellon, Citi, BNP Paribas, Euroclear, Lloyds Banking Group, and SIX Digital Exchange have all conducted tokenization pilots with the help of CCIP.
The Guardian Project
Joining Deutsche Bank are 17 institutional Project Guardian participants, which also include UK, Swiss, and Japanese regulators.
Asset managers, transfer agents, and custodians participated in the initial DAMA iteration, which investigated fund issuance and administration on the Ethereum blockchain.
As part of Project DAMA II, Deutsche Bank is expected to suggest protocol standards and identify best practices on Layer 2, while the initiative will continue to examine the tokenization of digitally represented assets.
Deutsche Bank and Memento Blockchain, a group creating zero-knowledge Layer 2 scaling solutions on Ethereum, will work together more closely. The bank will also receive assistance from Interop Labs, the creator of Axelar Network, a Project Guardian participant.
Sergey Gorbunov, co-founder of the Axelar protocol, told The Defiant that secure blockchain interoperability is necessary to realize the trillion-dollar promise of asset tokenization. Innovators like Deutsche Bank and Project Guardian are driving the development of open technologies that will make this technology possible.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
