ZKsync

Interop

Ethereum

Bank

Bitcoin

<ul> 
 <li aria-level="1">Deutsche Bank’s Project Dama 2 uses ZKsync to improve Ethereum’s scalability, reducing gas fees and enhancing transaction speed.</li> 
 <li aria-level="1">Layer 2 solutions like ZKsync process transactions off-chain, consolidating them to Ethereum, maintaining security and privacy.</li> 
 <li aria-level="1">The collaboration with Memento Blockchain Pte. and Interop Labs accelerates blockchain adoption for tokenization and financial services.</li> 
</ul> 
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.&nbsp; 
Additionally, it maintains user privacy by verifying transaction validity without exposing underlying data. As previously <a href="https://www.ethnews.com/bitcoins-potential-deutsche-bank-and-half-of-clients-tout-it-as-a-significant-asset/">reported on ETHNews</a>, 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 <a href="https://www.bloomberg.com/news/articles/2024-12-18/deutsche-bank-tries-to-tackle-compliance-hurdles-for-public-blockchains">cited by Bloomberg</a>. The project’s dual-chain structure addresses compliance concerns tied to public networks like Bitcoin and Ethereum.&nbsp; 
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 <a href="https://www.ethnews.com/the-future-is-on-deutsche-bank-euroclear-and-more-embrace-chainlink-in-trillion-dollar-tokenization-market/">ETHNews</a>, 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.&nbsp; 
As noted by <a href="https://www.ethnews.com/coinbase-and-bitpanda-unite-unleashing-bitcoin-and-ethereum-opportunities-for-deutsche-bank-and-beyond/">ETHNews</a>, 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. 
The post <a href="https://www.ethnews.com/ethereums-new-layer-2-solution-how-deutsche-bank-is-redefining-blockchain-transactions/">Ethereum’s New Layer 2 Solution: How Deutsche Bank is Redefining Blockchain Transactions</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Ethereum’s New Layer 2 Solution: How Deutsche Bank is Redefining Blockchain Transactions

ETHNews

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