Deutsche Bank, a multinational investment bank based in Germany, is partnering with the Monetary Authority of Singapore (MAS) on a project focused on asset tokenization. The collaboration involves joining MAS’s Project Guardian, which aims to explore the use of blockchain technology in wholesale funding markets and decentralized finance (DeFi) applications.
As part of this partnership, Deutsche Bank will test an open and interoperable blockchain platform for tokenized and digital funds. The bank will also propose protocol standards and contribute to industry progress. Boon-Hiong Chan, Deutsche’s Asia Pacific head of securities and technology, will lead the bank’s involvement in Project Guardian. The bank will work closely with Memento Blockchain, a software-based platform specializing in DeFi and digital asset management.
Deutsche Bank and Memento Blockchain previously collaborated on Project DAMA, a proof-of-concept for digital asset management access, in 2022 and 2023. The goal of the initiative is to develop a more efficient, secure, and flexible solution for digital fund management and investment servicing. The bank’s new efforts will focus on DAMA 2 and involve Interop Labs, the initial developer of the Axelar network, a major interoperable blockchain.
Several prominent cryptocurrency firms, including Ripple, have partnered with the Axelar Foundation to enhance interoperability in their blockchain networks. Ripple announced its collaboration with Axelar in February 2024, with plans to tokenize real-world assets on the XRP Ledger through Axelar’s interoperability.
Sergey Gorbunov, the CEO of Interop Labs, emphasized the importance of secure blockchain interoperability to unlock the potential of asset tokenization. He praised Deutsche Bank and Project Guardian for their innovation in establishing open systems and highlighted Axelar as critical infrastructure for institutional adoption.
Project Guardian, initiated by MAS in 2022, is a collaborative effort involving MAS, the UK’s Financial Conduct Authority, Switzerland’s Financial Market Supervisory Authority, and Japan’s Financial Services Agency. The project aims to explore various use cases for blockchain technology in the financial market.
Deutsche Bank’s involvement in Singapore’s tokenization project comes shortly after the bank published a report on stablecoins, raising concerns about the transparency of major issuers like Tether (USDT). Tether responded by criticizing Deutsche Bank’s claims, arguing that the report lacked substantial evidence or concrete data.
Tether’s USDT stablecoin has a significant presence in the cryptocurrency market and holds the largest share in terms of trading volume. It currently has a total market value of nearly $111 billion.
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