Germany-based financial institution Deutsche Bank has announced that it entered an asset tokenisation project by collaborating with Singapore’s Central Bank. Despite scepticism about the transparency of Tether, one of the world’s largest stablecoin, the multinational investment bank joined the Monetary Authority of Singapore’s (MAS) Project Guardian, an asset tokenisation project for wholesale funding markets and decentralised finance (DeFi) applications.

Through their partnership, Deutsche Bank is set to test an open architecture and interoperable blockchain platform to deliver tokenised and digital funds. In addition, the bank aims to suggest protocol standards, while also identifying the proper approach to contribute to industry advancement. Deutsche Bank’s development strategy As part of the current move, Deutsche Bank is projected to collaborate with Memento Blockchain, a software-based platform targeting DeFi and digital asset management.

The two organisations previously partnered both in 2022 and 2023, completing a proof-of-concept known as Project DAMA, referring to Digital Assets Management Access. Through this project, Deutsche Bank and Memento Blockchain intended to make digital fund management and investment servicing more efficient, secure, and flexible. Through its additional efforts, Deutsche Bank aims to introduce DAMA 2, with the development being set to include Interop labs, the initial developer of the interoperable blockchain, the Axelar network. Considering that secure blockchain interoperability is required for unlocking the potential of asset tokenisation, the bank and Project Guarding work towards creating open systems that can support this technology.

Initially introduced by Singapore’s MAS in 2022, Project Guardian represents a collaborative initiative between the region’s lawmakers and other financial market participants, including the UK’s Financial Conduct Authority, Switzerland’s Financial Market Supervisory Authority, and Japan’s Financial Services Agency. .