In response to the surge of interest in digital assets, the $1.5 trillion Deutsche Bank recently announced that it will be building a layer-2 blockchain (L2) on Ethereum. The investment bank announced it would use ZKsync in order to overcome regulatory issues that firms encounter when using technology for finance. Bloomberg.
This new network was part of Project Dama 2 which the company first announced in November. The development of the network is aimed at ensuring transaction efficiency, regulation safeguards, integration with Ethereum, as well as security.
JUST IN: 🇩🇪 $1.5 trillion Deutsche Bank builds L2 blockchain on Ethereum, Bloomberg reports.
— Watcher.Guru (@WatcherGuru) December 18, 2024
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$1.5 Trillion Deutsche Bank Building a Layer-2 Network on Ethereum
The year 2024 will be remembered as a landmark one for cryptocurrency. The United States has approved the first ETF based on crypto for Bitcoin in January. The asset’s price surged to six figures for the first ever time in November. The interest of institutional investors is on an all-time low, with asset managers BlackRock and Fidelity investing in this asset class.
Bitcoin could reach $200,000. It is possible that there has never been a better time to get into the cryptocurrency market for institutions. In fact, this has proved true with firms like Deutsche Bank who announced that they would continue to invest in the technology. The firm is set to build their own L2 networks on Ethereum.
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A new network has been developed to help bridge a gap between regulatory compliance and blockchain transparency. It is clear that the decision was made to meet the need of financial institutions who are increasingly using technology. It is possible that the success of this network will have massive ramifications.
Bloomberg states that the layer-2 network will encourage even more institutions to participate in decentralized systems. Deutsche Bank may therefore be able to create a surge in blockchain participation within the coming year. The report states that the bank hopes to launch its platform by 2024.
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Source: watcher.guru
