Gold finance reports that Deutsche Bank is working to address the regulatory challenges faced by financial institutions when using public chains, such as the risk of inadvertently transacting with criminals or sanctioned entities. The bank announced a test version of its asset servicing 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, head of industry application innovation for the Asia-Pacific region at Deutsche Bank, 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 actually validating the transactions", whether transaction fees are being paid to sanctioned entities, and unforeseen hard fork threats, which can drastically alter the digital ledger. "Chan said: "Using dual chains, these regulatory concerns should be addressed."