【Deutsche Bank is working to address the regulatory challenges faced by financial institutions when using public blockchains】

According to reports, Deutsche Bank is dedicated to resolving the regulatory challenges that financial institutions encounter when using public blockchains, such as the risk of inadvertently transacting with criminals or sanctioned entities. The bank announced the testing 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 blockchains to provide 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 mentioned that public blockchains like Ethereum are fraught with risks for regulated lending institutions. These include not knowing 'who exactly is validating the transactions,' whether transaction fees could be paid to sanctioned entities, and the unpredictable threat of hard forks, which could fundamentally alter the digital ledger. 'Chan said: "By using dual chains, these regulatory concerns should be addressed."