German banking giant Deutsche Bank is seriously considering the possibility of issuing its own stablecoin or participating in a larger industry collaboration. They want to increase payment efficiency by utilizing tokenized deposits, according to Bloomberg. Simply put, they want to simplify financial processes with a touch of digital technology.
If in the past this bank seemed cautious in crypto matters, now the situation has shifted. This exploration effort did not appear suddenly, let alone just trying it out. This is part of a broader strategy to dive into digital transformation amidst the pressure of innovation from various directions. Especially because the blockchain and digital asset ecosystem is increasingly difficult to ignore, even for a bank as old as Deutsche.
Furthermore, this is not their only big step in recent months. At the end of May, Deutsche Bank collaborated with Singaporean AI company finaXai to develop Project DAMA 2. This collaboration aims to change the way financial services are managed in a smarter way.
They are trying to combine the power of AI with blockchain so that digital asset management can be faster, more efficient, and relevant to today’s financial industry. It sounds complicated, but imagine being able to re-arrange your portfolio with just a click—that’s the big dream.
However, in April, Deutsche Bank and Standard Chartered hinted at their intention to return to the US crypto market. This was after initially withdrawing due to the FTX collapse and the turmoil at crypto banks. But the changing political climate has them thinking twice.
The Trump administration has signaled a softer stance on the industry, including possible regulatory easing and a change in leadership at the SEC. For big banks, that’s reason enough to re-strategize.
On the other hand, Deutsche Bank also has an interesting take on Bitcoin. In March, as we previously noted, they called Bitcoin “digital gold”—not just a metaphor, but also a strategic asset because it’s scarce, inflation-proof, and easy to move across borders.
They even highlighted the US’s plans to create a Strategic Bitcoin Reserve, a kind of national reserve in BTC. A move that other countries may soon follow suit.
When compared to the moves of other institutions, such as JPMorgan Chase, the situation gets even more interesting. The US bank recently announced that it will accept Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), as collateral for loans, putting crypto on a par with stocks in assessing a client’s net worth.
Something that would have been considered crazy five years ago is now a serious option on the bank’s boardroom table.
This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.
