Deutsche Bank is creating a layer-2 blockchain on Ethereum, named Project Dama 2, to address regulatory challenges in traditional finance. This initiative aims to utilize blockchain technology's benefits while mitigating risks associated with public ledgers. By leveraging ZKsync's zero-knowledge proof technology, the platform seeks to enhance transaction efficiency and privacy for institutional users. Project Dama 2 is part of the Monetary Authority of Singapore's Project Guardian, indicating a growing interest in blockchain-based asset servicing among traditional financial institutions. The addition of a proprietary layer-2 blockchain by Deutsche Bank aims to provide a more secure and compliant experience by allowing curated transaction validators and exclusive regulatory access. This development aligns with the trend of major financial players exploring blockchain solutions, with Ethereum being the preferred infrastructure for tokenizing real-world assets. Despite the potential benefits, concerns remain regarding transaction validation, fees, and blockchain disruptions, prompting the integration of a dedicated blockchain solution by Deutsche Bank. Read more AI-generated news on: https://app.chaingpt.org/news

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