Deutsche Bank Develops Ethereum-Based Layer-2 Blockchain for Regulatory Compliance

The German banking giant is leveraging ZKsync technology to build a public yet permissioned blockchain as part of a broader initiative to explore asset tokenization and decentralized finance.

• Deutsche Bank is creating a Layer-2 blockchain on Ethereum using ZKsync's Elastic Chain stack to address compliance challenges with public blockchains.
• The blockchain will be 'public and permissioned,' allowing transparency while restricting transaction validation to authorized participants.
• This initiative, codenamed Project DAMA 2, is part of the Singapore Monetary Authority's Project Guardian, which focuses on asset tokenization and blockchain experimentation.
• The Layer-2 network aims to enhance transaction speed and enable regulatory oversight, including potential 'super admin rights' for regulators to monitor fund movements.
• Deutsche Bank's move reflects a growing interest in blockchain technology among traditional financial institutions, aligning with Ethereum's rollup-centric scaling approach.

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