- Deutsche Bank’s Project Dama 2 uses ZKsync to improve Ethereum’s scalability, reducing gas fees and enhancing transaction speed.
- Layer 2 solutions like ZKsync process transactions off-chain, consolidating them to Ethereum, maintaining security and privacy.
- The collaboration with Memento Blockchain Pte. and Interop Labs accelerates blockchain adoption for tokenization and financial services.
Deutsche Bank, the largest financial institution in Germany, has announced its Ethereum Layer 2 solution, Project Dama 2, which is currently in the pilot stage. Built on ZKsync technology, this Layer 2 aims to improve blockchain transaction efficiency and reduce costs, with an official launch expected in 2025.
ZKsync is a second-layer scalability solution for Ethereum that uses zero-knowledge proofs to process transactions off-chain. By consolidating multiple transactions into one on Ethereum’s mainnet, ZKsync significantly lowers gas fees and enhances transaction speed.
Additionally, it maintains user privacy by verifying transaction validity without exposing underlying data. As previously reported on ETHNews, ZKsync represents a practical approach to scalability challenges in the blockchain space.
Boon-Hiong Chan, Deutsche Bank’s Asia-Pacific innovation leader, stated that Project Dama 2 integrates directly with Ethereum, which he referred to as “the busiest commercial highway in cryptocurrencies” as cited by Bloomberg. The project’s dual-chain structure addresses compliance concerns tied to public networks like Bitcoin and Ethereum.
Chan explained that this approach allows financial institutions to customize validator lists and provide regulators with unique “super-administrator rights,” ensuring controlled oversight of digital asset flows.
Project Dama 2 is a core part of Singapore’s Project Guardian, an initiative led by the Monetary Authority of Singapore with participation from 24 financial entities. This collaboration, highlighted on ETHNews, explores blockchain technology’s ability to tokenize assets securely. Deutsche Bank partnered with Memento Blockchain Pte. and Interop Labs to develop the Layer 2 platform.
The use of ZKsync technology enables the financial sector to reconcile scalability and compliance. Validators on Layer 2 earn rewards for processing digital asset transactions, while regulators can monitor fund movements without jeopardizing the system’s decentralization.
As noted by ETHNews, these developments underline the growing synergy between traditional finance and blockchain solutions.
Deutsche Bank’s pilot exemplifies how institutional players are leveraging Ethereum to address real-world challenges in cost, scalability, and regulatory compliance within the blockchain economy.
