Catena, Thursday, June 12, 2025-Deutsche Bank is weighing the issuance of a euro-backed stablecoins and developing tokenized deposit solutions as part of a broader strategy to modernize cross-border payments and deepen its involvement in the digital assets space.
Sabih Behzad, head of digital assets and currencies transformation at Deutsche Bank, told Bloomberg the lender is exploring multiple models, including issuing its own stablecoin or joining a consortium. The move aligns with growing institutional interest in stablecoins as regulatory clarity strengthens across the European Union and United States.
Tokenized deposits — blockchain-based versions of traditional bank balances — are also under consideration for improving settlement speeds and reducing transaction costs.
The German banking giant joins a widening group of global institutions exploring blockchain-driven innovations. Banco Santander is reportedly conducting stablecoin trials, and JPMorgan’s Kinexys network processes over $2 billion in daily blockchain-based payments, a small share of its $10 trillion global flows.
Deutsche Bank has made steady inroads into the sector through partnerships and investments. It took a stake in blockchain payment platform Partior and teamed with Swiss firm Taurus to offer crypto custody services. The bank is also part of Project Agorá, a BIS-led initiative investigating tokenization’s role in wholesale payments.
Meanwhile, asset manager DWS Group, partly owned by Deutsche Bank, launched a euro-pegged token venture with Flow Traders and Galaxy Digital.
The bank’s digital expansion follows a bullish forecast from Citigroup, which expects stablecoins to surpass $2 trillion in market cap by 2030, driven by regulation and institutional demand.
