Deutsche Bank Singapore has developed a tokenized fund project with Memento Blockchain and Interop Labs, the founder of the interoperability protocol of the Axlar Network blockchain. The collaboration, which began several years ago, recently produced an acting lite paper describing their Dama 2 initiative (Digital Assets Management Access) within Singapore Guardian Sandbox.
The project addresses the fundamental barriers that have hampered the adoption of blockchain in the management of assets, with a friendliness emerging as the central objective. The team focused on solving confidentiality problems, the turnover problems of transactions, the fragmentation of blockchain and the complexity of cryptocurrency mechanisms such as gas costs.
Balance regulation with decentralization
The initiative highlights a continuous tension between regulatory requirements and the principles of blockchain. While channels without authorization prioritize decentralization for improved safety, regulators prefer the networks they can control if necessary. This regulatory preference influences the blockchain selection, similar to JPMorgan’s decision to launch its JPMD deposit token on the Coinbase basic network rather than a more decentralized alternative.
Dama 2 addresses confidentiality through several layers. Confidential and personally identifiable data remains stored outside the blockchain, while Memento Blockchain works on a Zksync Layer 2 network. Participants cannot see their own transactions, although regulators maintain complete surveillance capacities. With the chosen model, we believe that the network operator retains complete visibility. The transactions of layer 2 undergo a lot of prizes on Ethereum using the cryptography of zero knowledge proof, preventing users of the basic blockchain from accessing sensitive information.
To combat the fragmentation of blockchain in networks without authorization, Banque Deutsche has teamed up with Axecare for the connectivity of the transverse chain. The article compares this approach with competing interoperability solutions, in particular CCIP, Wormhole and Layerzer de Chainlink, although the specific protocols do not remain named in what seems to be a selective analysis.
Rationalization of the user experience
The solution prioritizes practical conviviality for end users and asset managers. A payment function allows payments of gas costs in traditional fiduciary currencies, while asset managers have access to an App Store model for the selection of smart contracts. This approach allows managers to choose the desired features and to personalize the variables without developing control contracts independently or largely suppliers.
These features are part of a rationalized dashboard alongside Deutsche Bank Securities Services custody offers, creating a complete platform for the management of token assets.
Dama 2 joins the growing efforts of companies so that the asset management sector takes advantage of blockchains without authorization. Recent pilots include collaborations between Schroders and Calastone and Apollo with JPMorgan. Active offers have emerged from Standard Chartered SC companies via Libeara and free capital, supported by Nomura and Brevan Howard Digital. The main asset managers, including Blackrock and Franklin Templeton, have also launched monetary market funds in Tokenized, indicating a wider momentum towards the integration of the blockchain.
