Deutsche Bank is taking its blockchain strategy forward by developing a Layer 2 network based on ZKsync technology called DAMA 2 with the help of Axellar (AXL) developer Interop Labs.
The initiative, reported by Bloomberg, addresses compliance challenges in regulated finance by improving transaction efficiency and strengthening regulatory oversight over public blockchains.
The project is part of Project Guardian, a blockchain-focused initiative spearheaded by the Monetary Authority of Singapore (MAS). Deutsche Bank and Interop Labs, the original developer of the Axelar Network, are collaborating on the initiative to provide secure cross-chain interoperability for financial institutions.
DAMA 2 leverages Memento Blockchain’s ZKchain and Axelar’s cross-chain interoperability solutions built on the ZKsync technology stack. The network aims to simplify the complexities associated with multi-chain fund allocation and asset servicing for asset managers.
Axelar’s technology plays a crucial role in enabling decentralized and secure cross-chain operations, which is a key requirement for traditional financial institutions like Deutsche Bank to effectively adopt blockchain technology.
DAMA 2 is designed to bridge the gap between traditional financial systems and blockchain technology by integrating off-chain assets with the on-chain ecosystem.
*This is not investment advice.