Golden Finance reports that Deutsche Bank is working to address the regulatory challenges faced by financial institutions when using public blockchains, such as the risk of inadvertently transacting with criminals or sanctioned entities. The bank announced the test version of its asset service pilot project Dama 2 in November. The platform includes a so-called 'Layer 2', which is a tool that utilizes public chains while providing cheaper and more efficient transactions. Boon-Hiong Chan, the head of industry application innovation for Deutsche Bank in the Asia-Pacific region, stated in an interview that Deutsche Bank's Layer 2 connects to Ethereum, which is the busiest commercial channel in the cryptocurrency space. Chan Wenxiong noted that public chains like Ethereum are fraught with risks for regulated lending institutions. These include not knowing 'who is validating the transactions,' whether transaction fees will be paid to sanctioned entities, and unforeseen hard fork threats that could fundamentally change the digital ledger. Chan said: 'With the dual-chain approach, these regulatory concerns should be addressed.'