Deutsche Bank develops solution to address blockchain regulatory challenges
Deutsche Financial institution AG is addressing regulatory challenges that banks face when utilizing public blockchains, resembling the chance of unknowingly transacting with criminals or sanctioned teams.
In line with a Bloomberg report the financial institution launched its take a look at model of Challenge Dama 2, an asset servicing pilot, in November. This platform’s layer two system depends on public blockchains to supply a extra inexpensive and environment friendly transaction.
Boon-Hiong Chan, a Deutsche Financial institution Asia-Pacific innovation lead, stated that the financial institution’s Layer 2 connects to Ethereum, one of many blockchain’s busiest networks.
Deutsche Financial institution sees blockchain as a method to take care of margin pressures in monetary companies
Chan defined that public blockchains resembling Ethereum pose dangers to regulated banks. The dangers embrace uncertainty concerning who’s performing the validation of transactions, the opportunity of paying charges to sanctioned entities, and the opportunity of surprising modifications to the blockchain.
Chan added “Utilizing two chains, a variety of these regulatory considerations ought to be capable to be glad.”
Challenge Dama 2 is certainly one of a number of initiatives in Singapore’s Challenge Guardian, the place 24 main monetary establishments want to tokenize property through blockchain. Deutsche Financial institution, amongst different advocates, sees blockchain as a method to take care of margin pressures in monetary companies. However there are nonetheless questions as to how far banks ought to go within the crypto world.
