Traditional banks enter Layer 2, Deutsche Bank is building on ZKsync, and has tested multiple use cases

Traditional financial institutions are also starting to do Layer 2. Deutsche Bank is launching an Ethereum-based Layer 2 solution called Project Dama 2, a beta version of which was launched in November and is expected to be officially launched next year after regulatory approval. (Synopsis: Europe's largest) Deutsche Bank cooperates with Bitpandaexchange: provides users with instant fiat coin deposit service) (Background supplement: Euro Stable Coin has a large demand!) Deutsche Bank, Flow Traders, Galaxy Digital and the traditional financial institution have also begun to do Layer 2. Boon-Hiong Chan, Deutsche Bank's head of industry application innovation in the Asia-Pacific region, recently revealed that Deutsche Bank is launching an Ethereum-based Layer 2 solution called Project Dama 2, the beta version of which was launched in November and is expected to be officially launched after receiving regulatory approval next year. This move not only marks the further exploration of the traditional financial institution in the field of block chain, but also may open a new trend, security and compliance block chain solutions are introduced into the core of TradFi, and the adoption rate is further increased. Built on ZKsync Stack, multiple use cases are being tested Deutsche Bank's Project Dama 2 is also part of Project Guardian, the Monetary Authority of Singapore (MAS). This is a collaborative initiative between policymakers and the financial industry to improve the liquidity and efficiency of financial markets through asset tokenization. A total of 27 industry bodies participated in Project Guardian, including Ant Group, ANZ, Bank of New York Mellon, Citibank, DBS Bank Singapore, Fidelity, Franklin Templeton, HSBC, JPMorgan Chase, Moody's, UBS, Standard Chartered, S&P Global and many more. It also includes a range of associations and partner organizations, such as SWIFT, as well as policy-making institutions such as Central Bank and the World Bank. Memento Blockchain and Interop Labs are Deutsche Bank's technology partners to help Project Dama 2 develop its most viable product. Specifically, Memento Blockchain has developed a fully functional testnet for the public licensing chain Memento ZKchain. The testnet is built on the ZKsync Stack and is supported by Matter Labs and cross-chain interaction interoperability over the Axelar network, powered by Interop Labs. Key features of Memento ZKchain include: Digital identity based on Soulbound Token: A secure and immutable identity system for authority management and facilitating KYC, AML, sanctions checks, and investor suitability testing. Paymaster features: Designed to simplify gas fee management through traditional payment channels, providing a clear audit trail for gas fee payments. Custom Block Chain Browser: Designed to manage on-chain transaction confidentiality while retaining full regulatory review capabilities. Establishment and issuance of tokenized funds: Implemented through the Domani Protocol decentralized application (dApp), it supports the establishment and distribution of tokenized traditional investment funds, hybrid funds that combine digital and traditional assets, or fully native digital funds. In addition, Interop Labs enables a comprehensive Cross-Chain Interaction connection between the Memento ZKchain testnet and Avalanche Fuji and Stellar via the Axelar network. This feature supports integration with more than 69 Block chain networks, improving the accessibility, security scalability and customization of financial applications. Currently, Project Dama 2's project team is testing multiple use cases, including tokenized funds in single or multiple blockon-chainissuance and distributions, interoperability of digital assets and digital cash flow, and near-real-time settlements to improve asset security and operational efficiency. Traditional banks enter Layer 2, Deutsche Bank is built on ZKsync and has tested multiple use cases Explore the Compliance Challenge of Using Public Block Chains for Financial Institutions Deutsche Bank's upcoming Layer 2 is designed to address the compliance challenges faced by financial institutions when using public block chains. Examples include unidentified transaction validators, fee flows to sanctioned entities, and Hard Fork risk. Its project leaders believe that public blockchains such as Ethereum are fraught with risks for regulated lenders. These include the inability to determine "exactly who is verifying these transactions," whether Money Laundering could be paid to sanctioned entities, and the threat of significant changes to the ledger due to unforeseen hard forks. Layer 2 components may give banks the freedom to experiment with public chains. This will enable banks to customize a "more personalized list of validators" that process digital asset transactions to earn rewards. Other benefits include the possibility of giving regulators – regulators only – "super admin privileges", meaning they can review money flows if necessary. "Many of these regulatory concerns should be addressed by using a dual-chain architecture," he said. Advocates, including Deutsche Bank, see the Block chain as an opportunity to combat profit compression in the financial services industry. However, there are still some questions about the extent to which banks should be deeply involved in the encryption ecosystem. AdrianoFeria.eth, an encryption industry insider, believes that crucially, the level of regulatory compliance required by these agencies is unlikely to be achieved in any Layer 1 Blockon-chain. For institutions that require strict oversight and interoperability, the only pragmatic option is to run their own private, permissioned Layer 1 chain, or leverage Ethereum's L2 ecosystem. Deutsche Bank is continuing to deploy in the field of encryption Deutsche Bank has made frequent moves in the field of encryption in 2024. Back in June, Deutsche Bank provided BitPanda with an API-based account solution that gives it access to the Deutsche International Bank Account Number (IBAN), an internationally recognized code that helps banks securely process international transfers. BitPanda plans to use this service to improve the efficiency and security of fund transfers. In addition, Deutsche Bank provides multi-coin account and forex services to Keyrock, a market maker in the encryption market, to help it optimize and expand its market making and over-the-counter trading (OTC) services in EMEA, APAC and LATAM regions. On November 27, Deutsche Bank joined Singapore-based Block Chain fintech company Partior as a strategic investor in its Series B financing to support Partior in expanding its cross-border settlement capabilities and developing features such as real-time forex swaps and multi-bank payments. On December 10, Deutsche Bank also announced a partnership with Crypto.com in Singapore, Australia...