Deutsche Bank joins Singapore asset token project

Update May 14, 12:35 UTC: This article has been updated to include quotes from Interp Labs CEO Sergey Gorbunov.

German multinational investment bank Deutsche Bank is partnering with Singapore's central bank on an asset token.

Deutsche Bank has joined the Monetary Authority of Singapore's (MAS) Project Guardian, an asset token focused on mass funding markets and decentralized finance (DeFi) applications.

As part of the collaboration, Deutsche Bank will test an open architecture and scalable blockchain platform for tokenized and digital currencies. The bank provides protocol standards and identifies the best approach to contribute to industry growth.

Boon-Hyeong Chan, head of Deutsche Asia Pacific Security and Technology, will lead the bank for Project Guardian. The bank is expected to work closely with Memento Blockchain, a software-based platform targeting digital asset management.

Deutsche and Memento Blockchain previously worked together in 2022 and 2023, successfully completing a proof-of-concept project known as Project DAMA that addresses access to digital asset management.

The initiative aims to unlock a more efficient, secure and flexible solution for digital fund management and investment services.

The new Deutsche Bank's efforts are aimed at promoting DAMA 2. The development includes Interop Labs, the original developer of the original interoperable blockchain, Axelar Network.

Some major cryptocurrency companies, including Ripple, have been working with the Axelar Foundation to collaborate on blockchain networks.

Ripple announced a partnership with Axelar in February 2024, with plans to eventually simulate the real-world assets (RWA) of the XRP Ledger that can be run through Axelar.

“It is now clear that secure blockchain interoperability is needed to unlock the potential of trillions of dollars in property tokenization,” Sergey Gorbunov, Axelar co-founder and CEO of Interop Labs, told Cointelegraph.

“Deutsche Bank and Project Guardian are leading innovation in building the open systems that enable this technology. Acceler is critical infrastructure for institutional adoption, and we are excited about this collaboration,” he said.

Related: RWA Protocols Locked in at $8B Total Value: Messari Closes

Launched by Singapore's MAS and operational in 2022, Project Guardian is a collaborative initiative between MAS and other financial market players, including the UK's Financial Conduct Authority, the Swiss Financial Market Supervisory Authority and Japan's Financial Services Agency.

Deutsche's introduction of Singapore's token project comes just days after the bank reported on stablecoins, raising questions about the transparency of major issuers such as Tether (USDT).

Teter went on to criticize Deutsche Bank for its claims, stressing that the report failed to provide factual data or evidence to support its claims.

Tether's USDT stablecoin has established itself as a major player in the cryptocurrency market with the largest share in terms of transactions. It is the world's largest stable coin with a total market cap of nearly $111 billion.

Magazine: ‘Sic AIs on Each Other' AI to Prevent Apocalypse: David Brin, Sci-Fi Author