Deutsche Bank Implements ZKsync Technology in Ambitious Project

• Deutsche Bank adopts ZKsync for blockchain innovation.
• L2 solution aims to increase security and regulatory efficiency.
• Expanding banking services with Crypto.com in Asia Pacific.

In a strategic move to improve the efficiency of its financial operations and ensure compliance with regulatory standards, Germany’s Deutsche Bank is leading a pioneering initiative. The institution is integrating ZKsync blockchain technology into its infrastructure through “Project Dama 2,” an extension of Singapore’s “Project Guardian.”

The focus of this project is to overcome common challenges faced by financial institutions on public blockchains. These include the difficulty of identifying transaction validators, the risk associated with payments made to sanctioned entities, and the impact of unplanned hard forks.

Boon-Hiong Chan, Head of Technology and Securities Markets for Asia-Pacific at Deutsche Bank, noted that the Layer 2 solution will enable banks to set up their own trusted validators and provide regulators with extensive monitoring capabilities. “This L2 system will be a crucial tool for maintaining regulatory oversight without sacrificing operational effectiveness,” he said.

Late last year, the bank demonstrated the technology in a test version, highlighting not only the improved security but also the cost efficiency. “The double layer of blockchain makes it easier to comply with regulatory requirements,” Chan added.

The collaboration for the development of this project involves Memento Blockchain and Interop Labs, and is part of the broader context of the “Guardian Project”, which brings together 24 large financial entities to explore the use of blockchain in the tokenization of assets.