Deutsche Bank Pursues Blockchain Innovation with Euro-Denominated Stablecoin and Layer-2 Network Development
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2 min read
Title: German giant Deutsche Bank develops its own Ethereum-based blockchain
Germany’s largest bank, Deutsche Bank, has been actively involved in the world of cryptocurrencies and Bitcoin for a long time. In April, they announced that they had revised their views on Bitcoin, stating that it is no longer just a hobby but not yet an essential part of the financial system either. Given the positive developments, the German banking giant decided to invest more in cryptocurrency research and development.
As a result, Deutsche Bank has partnered with Crypto.com and has announced its plans to launch a euro-denominated stablecoin. According to their roadmap, they may release their first product as early as the beginning of 2025.
However, the bank is not stopping there. In an ambitious move, they aim to develop their own Ethereum-based blockchain by 2025. This development comes with significant potential for the financial system, as it would enable faster and more cost-effective transactions while also providing regulatory compliance tools.
The proposed solution involves creating a layer-2 blockchain network that operates on top of a primary layer-1 network like Ethereum. These L2 blockchains promise to offer quicker and more affordable transaction processing capabilities. Furthermore, they provide regulatory compliance solutions, such as “super admin rights”, which would enable financial regulators to audit and monitor activities when necessary.
This step could pave the way for decentralized networks to be widely adopted within financial institutions. The integration of these functionalities would harmonize blockchain transparency with strict regulatory requirements. If successful, Deutsche Bank’s approach may encourage other major banks and financial institutions to follow suit in adopting blockchain solutions for asset management and cross-border transactions.
Címke: Ethereum (ETH)
Source: www.bitcoinbazis.hu
