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Investing.com -- Deutsche Bank AG (ETR:DBKGn), Germany’s largest lender, is investigating stablecoins and various forms of tokenized deposits, as major financial institutions increasingly consider venturing into the digital asset sector, according to Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation, who interviewed with Bloomberg.
The bank is assessing its options with stablecoins, which could entail issuing its own token or joining a sector-wide initiative. In addition to this, the bank is also considering whether to create its own tokenized deposit solution for use in payments.
With regulations encompassing the entire European Union and stablecoin legislation being processed by the US Congress, global banks are trying to understand how these tokens and the blockchain technology that supports them can enhance efficiency. However, despite numerous initiatives being in progress for years, there have been few applications of significant scale in the real world to date.
Behzad noted the growing momentum of stablecoins, particularly in a regulatory environment that appears supportive, especially in the US. He outlined that banks have a broad range of options when it comes to engaging in the stablecoin industry. These options range from acting as a reserve manager to issuing their own stablecoin, either independently or as part of a consortium.
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