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Deutsche Bank collaborates with industry partners to launch document on blockchain interoperability
Deutsche Bank has joined a group of leading financial institutions and Web3 innovators to produce an in-depth document on how to achieve interoperability for tokenized assets across public and private blockchains and legacy systems.
Published today, “Institutional interoperability: How financial institutions navigate a multichain world” addresses how financial institutions can achieve greater accessibility and liquidity for tokenized assets, with flexibility, privacy, transparency and scalability. All contributors to the paper highlighted the need for interconnected network models that span multiple blockchains.
Deutsche Bank contributed to the article, describing its experimentation with blockchain and tokenization from a wealth service perspective. The bank explains why it believes these technologies can drive cost-effective, efficient and faster value for customers with non-traditional business models. He also discusses why interoperability between blockchains and with traditional systems is a necessity and describes its challenges.
The document serves as a road map for financial institutions developing tokenized asset opportunities and facing a complex range of public and private blockchains, along with regulatory and customer requirements. It was written by blockchain analyst Emily Parker, based on a framework established by the Monetary Authority of Singapore’s Project Guardian in 2023. Other contributors to the document include Citi, Mastercard and Northern Trust, who contributed featured sections. Web-3 native innovators Axelar Foundation led the production of the report, which also included contributions from Centrifuge and Metrika.
Multi-chain asset interoperability and maintenance will likely become a necessity for asset managers as their clients adopt different chains. It will be essential that asset servicers know how to address and service interoperability at scale, while ensuring the security of digital assets to enable sustainable growth that multiple chains can amplify. Anand Rengarajan, global head of sales and head of securities services APAC, Corporate Bank, Deutsche Bank.
“Tokenized assets are by nature interoperable and connect assets recorded on off-chain ledgers with on-chain representations. The question is not: how to facilitate one of these connections, but how to facilitate potentially thousands of connections across on-chain and off-chain ledgers, in a way that is secure, scalable and open,” said Georgios Vlachos, director of Axelar Foundation and co-founder of the Axelar Protocol.
Contributors will discuss the paper’s findings in a panel event at the Point Zero Forum in Zurich, July 1-3.