FRANKFURT, Germany Thursday, June 6, 2024 – Deutsche Bank, the German banking giant, is exploring the potential of blockchain technology to streamline record-keeping for tokenized funds. The bank is testing a platform built on the Ethereum network, according to a recent report.
The new strategic movement would be guided by the Guardian Project initiated by the Monetary Authority of Singapore.
“It will help us stay relevant, because with the kind of margin compression impacting the overall financial services industry, the only way one can survive is by innovating,” said Anand Rengarajan, the bank’s Asia-Pacific and Middle East head of securities services and global head of sales. 2
Contract-based solutions and blockchain would lower the cost, transaction time, and risk, he added.
The estimates given by Citigroup Inc. highlighted that the tokenization market could surge to $5 trillion by 2030, and Deutsche’s commitment would be a massive step forward.
Several advancements would be implemented by the banking giant joining the blockchain platform, yet unknown to the public.
The ability to keep records would feature supporting tokenized fund issuers to gather investor details, and the platform would be interoperable, securing the accessibility of the fund manager to any blockchain.
The passive investment products resulted in lowering the average asset management fee, and the data pointed out by Boston Consulting Group revealed that in 2023, the basis points were 22, decreasing 3 points compared to 2015. 2
Nevertheless, the shared commitment would encounter the requirements of exploring tokenization use cases through key sectors of fixed income, asset management, and foreign exchange.
- Deutsche Bank: https://www.bloomberg.com/news/articles/2024-05-28/deutsche-bank-says-blockchains-can-help-weather-margin-pressure[↩]
- Deutsche Bank: https://www.bloomberg.com./news/articles/2024-05-28/deutsche-bank-says-blockchains-can-help-weather-margin-pressure[↩][↩]
