Multiple reports indicate that Deutsche Bank is launching a Layer 2 blockchain to fuel digital assets and compliance at the bank.
A Layer 2 blockchain is a separate blockchain added to the top of a Layer 1 blockchain like Ethereum. A Layer 2 aims to improve the underlying blockchain.
Coingape reports that Deutsche Bank plans a 2025 MVP launch for Dama 2. The Layer 2 blockchain aims to work with public blockchains while mitigating risk and remaining compliant.
DAMA 2 is part of the broader project with the Monetary Authority of Singapore’s (MAS) Project Guardian.
Deutsche Bank explains Project Dama as follows:
By providing a one-stop digital fund investment servicing platform, asset managers and their existing transfer agents, fund administrators, and custodians can plug in and play to significantly reduce the effort required to launch and administer digital funds.
Under Project Guardian, the Monetary Authority of Singapore has enlisted more than 40 financial institutions, associations, and policymakers[1] to experiment with asset tokenization in capital markets. As of November, more than 15 industry trials have been conducted in six currencies across multiple financial products.
MAS aims to advance tokenization due to the benefits of lower costs, faster transactions and streamlined processes.