Orhan 
Germany’s largest bank, Deutsche Bank, is developing a layer 2 (L2) blockchain on Ethereum using ZKsync technology to enhance compliance in the regulated financial sector.
Project Dama 2
This initiative is part of Deutsche Bank’s “Project Dama 2,” designed to integrate directly with Ethereum. The primary goal is to improve transaction efficiency while strengthening regulatory measures.
Potential Impact on the Financial Sector
Deutsche Bank’s solution aims to minimize risks such as interactions with sanctioned assets by providing regulators with special audit rights. The platform is designed to combine blockchain transparency with financial compliance requirements.
If successful, Deutsche Bank’s approach could lead the financial sector to engage more deeply with decentralized networks. However, regulatory approvals will be a critical step for the platform’s launch as a minimum viable product (MVP) in 2025.
Why Choose Layer-2 Blockchain Technology?
Layer 2 blockchains operate atop main networks (layer 1) like Ethereum, offering faster and cheaper transactions. Additionally, they enhance the auditability of financial transactions with regulatory tools like “super admin rights.”
Partnership with Crypto.com
On December 10, Deutsche Bank partnered with Crypto.com to provide institutional banking services in the Asia-Pacific region. This partnership will offer fiat-to-crypto exchange and trading services in areas like Singapore, Australia, and Hong Kong.
The German bank has also announced plans for future partnerships in the UK and other European countries.
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