In the recent rush of increased interest in the digital asset sector, $1.5 trillion Deutsche Bank has announced that it is building a layer-2 (L2) blockchain on Ethereum. Indeed, the investment bank has announced that it is set to use ZKsync to confront regulatory challenges firms face when using the technology in finance, according to Bloomberg.
The new network is part of the firm’s Project Dama 2, which was first unveiled in November. Moreover, its development is looking to address ways to ensure transaction efficiency, security, regulatory safeguards, and integration with Ethereum.
JUST IN: đŸ‡©đŸ‡ª $1.5 trillion Deutsche Bank builds L2 blockchain on Ethereum, Bloomberg reports.
— Watcher.Guru (@WatcherGuru) December 18, 2024
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$1.5 Trillion Deutsche Bank Building a Layer-2 Network on Ethereum
2024 has proven to be an unforgettable year for crypto. In January, the United States approved its first crypto-based ETF for Bitcoin. That wasn’t the end, as the asset surged in November to a six-figure price for the first time in its history. With asset managers like BlackRock and Fidelity getting in on the asset class, institutional interest is at an all-time high.
The asset class is expected to surge in value, with Bitcoin eyeing $200,000 next year. Therefore, there may never be a better entry point for institutions than right now. Indeed, that has proven true, with companies like Deutsche Bank announcing their continued foray into the technology, with the firm set to build its own L2 network on Ethereum.
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The new network is developed to help bridge the gap between blockchain transparency and regulatory compliance. The decision certainly looks to answer the growing need to address financial institutions’ utilization of technology while still looking to remain compliant. The ramifications for the success of the network could be massive.
With the layer-2 network, even more institutions would feel encouraged to interact with decentralized networks, Bloomberg notes. Therefore, Deutsche Bank could create an influx of blockchain technology participation in the next year. According to the report, the bank is hoping to launch the platform in 2024.
