Germany’s Largest Bank Deutsche Bank Launches New Cryptocurrency Initiative

Germany's largest bank, Deutsche Bank AG, has begun examining next-generation digital finance instruments such as stablecoins and tokenized deposits, amid growing institutional confidence in the digital asset space.

Deutsche Bank is evaluating options to issue its own stablecoin or participate in an industry-wide initiative, the bank’s head of digital assets and currency transformation, Sabih Behzad, said in a statement. He also said that developing its own tokenized deposit solution for use in payments is also on the agenda.

“The momentum in this area is clearly felt, especially in the US, with the regulatory environment shaping up in favor of stablecoins. Banks have many options, from acting as reserve managers to issuing their own stablecoins independently or through consortiums,” Behzad said.

With digital asset regulations coming into effect across the European Union and stablecoin legislation in the U.S. Congress, global banks are exploring how blockchain technology can provide greater efficiency in payments. But despite years of work in this area, widespread implementation has yet to materialize.

ING CEO Steven van Rijswijk said, “I think there is a big role for a European-based stablecoin or a stablecoin project where European banks work together, especially in the digital world in the payment and settlement area.” However, he added that the Amsterdam-based bank does not have a project to publicly announce at the moment.

*This is not investment advice.