New bridge from Deutsche Bank to connect crypto and TradFi

-

Deutsche Bank is stepping into the future with a new layer-2 blockchain solution designed to tackle the compliance hurdles that come with using public blockchains in traditional finance.

Say hello to Project Dama 2, a game-changer that’s part of Singapore’s Monetary Authority’s Project Guardian.

Everyone get a layer-2

The bank’s new protocol supports existing public blockchains like Ethereum by focusing on cost efficiency, security, and regulatory compliance.

By using specially selected validators that meet strict compliance standards, Deutsche Bank wants to create safer interactions, minimizing risks like accidentally dealing with sanctioned entities or unverified validators.

Plus, it incorporates features like ZKsync technology, which ramps up transaction speed and security.

One of the coolest aspects of this project is the introduction of super admin rights for regulators, or as many call it, censorship, so this means oversight authorities can keep an eye on transactions transparently whenever needed.

It’s a common way to balance the perks of blockchain, like scalability and interoperability, with the necessary regulatory requirements, making it a safer and more efficient framework for financial institutions.

Traditional institutions are hesitant

Public blockchains like Ethereum have the potential to revolutionize finance, especially through asset tokenization, but traditional banks have been cautious about jumping in due to compliance worries.

Risks include unexpected events like hard forks that can throw digital ledgers into chaos.

Project Dama 2 addresses these issues while keeping a detailed transaction record separate from the underlying Layer-1 blockchain.

Developed in collaboration with crypto firms Memento Blockchain and Interop Labs, Project Dama 2 offers a tailored compliance approach while leveraging blockchain’s scalability and cost-saving benefits.

Adoption

This development highlights how important collaboration is for advancing blockchain innovation, and the project represents a strategic move toward combining TradFi’s regulatory rigor with the efficiency of decentralized systems.

If regulators give it the green light, Deutsche Bank plans to roll out a minimum viable product for Dama 2 next year.

Have you read it yet? Worldcoin have to erase user data

LATEST POSTS

Russia’s Rostec rolls out RUBx, a ruble-backed stablecoin on TRON

Russia’s defense and tech giant, Rostec, is stepping into the crypto ring with a new player. Meet RUBx, a stablecoin pegged one-to-one with the Russian...

The Brazilian job, or how to buy $140 million cash for $2,700?

Brazil just got hit with one of the nastiest cyber heists in its history. We’re talkin’ about a cool $140 million gone in the blink...

Gemini’s tokenized stocks are here, and the lineup is impressive

Gemini just dropped a big move, and it’s not your grandma’s stock market update. They’ve unleashed a whole new lineup of tokenized stocks on the...

Banks are scammers? $20 million cryptovictim says so

Michael Zidell, a guy who got played for $20 million in a crypto romance scam, is now pointing fingers at not one, but three banks....

Most Popular

Guest posts