Deutsche Bank Successfully Trials Tokenized Investment Platform
Milestone Date: February 21, 2023
Deutsche Bank, one of the largest financial institutions in the world, has successfully completed a trial of its one-stop digital fund investment serving platform. This marks a significant milestone in the adoption of blockchain technology in the banking industry. The trial, called Project DAMA (Digital Assets Management Access), explored the potential of tokenization of traditional financial instruments via the use of distributed ledger technology (DLT).
During the trial, Deutsche Bank Singapore and Memento Blockchain successfully conducted investment servicing involving tokenized funds by creating a decentralized finance (DeFi) platform on Ethereum and a unique, non-transferable soulbound token (SBT). Asset managers created a digital asset fund with the SBT and established a fiat-to-digital on-ramp. Institutional investors holding the SBT could easily subscribe to the fund by minting tokens directly or by utilizing a decentralized exchange aggregator or built-in marketplace. The trial essentially showcased the potential for blockchain to play a transformative role when it comes to the efficient and secure management of digital assets in the financial industry.
Use of the SBT allows developers to verify the identity of a wallet owner and allow them access to investment opportunities without needing to provide personal identification each time. The SBT also can restrict access to certain opportunities depending on the users’ risk tolerance and experience. The trial relied on MetaMask as the digital wallet to facilitate the transfer of digital assets.
One interesting point to note on the regulatory front is how Deutsche Bank and other large financial institutions that operate in crypto–friendly geographies like Germany and Singapore (where there’s more regulatory certainty) are beginning to take on some very significant blockchain projects. The evidence suggests that regulatory certainty in certain geographies is clearing the way for innovation in those same geos. Deutsche Bank's successful completion of the trial highlights its commitment to embracing emerging technologies and adapting to the changing needs of its clients. By harnessing the potential of blockchain and digital assets, the bank aims to stay at the forefront of innovation in the financial sector.
By Elizabeth Morrison
Published:February 21, 2023