Deutsche Bank has launched a test of Project Dama 2 to address public blockchain risks.
Project Dama 2: A New Initiative
Deutsche Bank launched its test version of Project Dama 2 in November. This platform uses a layer two system on public blockchains to make transactions more affordable and efficient. Boon-Hiong Chan from Deutsche Bank mentioned that their Layer 2 connects to Ethereum, one of the busiest blockchain networks.
Blockchain and Financial Services
Chan explained that public blockchains like Ethereum pose risks to regulated banks. These risks include uncertainty about who is validating transactions, the possibility of paying sanctioned entities, and unexpected changes to the blockchain. Chan added, "Using two chains, some of these regulatory concerns should be able to be satisfied."
The Future of Banks in Blockchain World
Project Dama 2 is part of Singapore's Project Guardian, where 24 major financial institutions are exploring asset tokenization via blockchain. Deutsche Bank, among others, sees blockchain as a means to deal with margin pressures in financial services. However, there are still questions about how far banks should go in the crypto world.
Deutsche Bank continues to explore the opportunities and risks of applying blockchain technologies in the banking industry, and projects like Dama 2 demonstrate its commitment to adapting to new challenges.
