Deutsche Bank is working hard to address the regulatory challenges faced by Financial Institutions when using public Blockchains

Golden Finance reported that Deutsche Bank is committed to solving the regulatory challenges faced by Financial Institutions when using public Blockchains, such as the risk of inadvertently transacting with criminals or sanctioned entities. The bank announced the test version of the asset service pilot project Dama 2 in November. The platform includes a so-called “Layer 2”, which is a tool that uses public Block chain to provide cheaper and more efficient transactions. Boon-Hiong Chan, Director of Industry Application Innovation in the Asia-Pacific region of the bank, said in an interview that Deutsche Bank’s Layer 2 is connected to Ethereum, the busiest commercial channel in the cryptocurrency field. Chan said that for regulated lending institutions, public blockchains such as Ethereum are full of risks. These include not knowing ‘who is validating the transactions,’ whether transaction fees will be paid to sanctioned entities, and the unpredictable threat of hard forks, which could fundamentally alter the digital ledger. ‘Chan said: Using a dual chain, these regulatory concerns should be addressed.’