The post Deutsche Bank’s Project Dama 2: Exploring Compliance Solutions for Ethereum in Traditional Finance appeared on BitcoinEthereumNews.com.

Deutsche Bank’s solution aims to bridge TradFi and decentralized tech for cost efficiency and compliance. Project Dama 2 offers curated validators, ZKsync technology, and regulator oversight to ensure secure transactions. The project’s success could serve as a blueprint for other institutions grappling with these challenges. Deutsche Bank pioneers blockchain compliance with Project Dama 2, merging traditional finance with decentralized technology while ensuring security and efficiency. Deutsche Bank Tackles Compliance Challenges for Public Blockchains The compliance risks of public blockchains are one of the most significant hurdles faced by regulated institutions. With the latest solution, Project Dama 2, Deutsche Bank introduces a new framework aimed at mitigating regulatory concerns. It also looks to capitalize on blockchain’s efficiency and cost benefits. Unveiled in November, Project Dama 2 is an asset-servicing pilot developed as part of the Monetary Authority of Singapore’s (MAS) Project Guardian. This initiative involves 24 major financial institutions experimenting with blockchain technology to tokenize assets. Deutsche Bank’s contribution includes a “Layer 2” protocol, which enhances public blockchains like Ethereum. Specifically, it makes transactions more cost-effective and efficient. “Using two chains, a number of these regulatory concerns should be able to be satisfied. This approach allows us to create a more curated and compliant framework while leveraging the benefits of public blockchain networks,” Bloomberg reported, citing Boon-Hiong Chan, Deutsche Bank’s Asia-Pacific industry-applied innovation lead. Meanwhile, public blockchains such as Ethereum, while promising, present a unique set of risks for financial institutions. These include the potential for unknowingly interacting with criminals, sanctioned entities, or unverified validators. There is also the risk of vulnerabilities to unforeseen events like hard forks that could disrupt the digital ledger. Deutsche Bank’s Layer-2 aims to address these issues by creating a bespoke list of validators that meet stringent compliance standards. The L2 solution also incorporates advanced features…

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Filed under: News - @ December 18, 2024 10:23 am