Deutsche Bank Unveils DAMA 2 for Regulated Funds on Public Blockchains

Deutsche Bank, in collaboration with Memento Blockchain and Interop Labs, has unveiled plans for Digital Asset Management Access 2 (DAMA 2), a tokenization platform designed to operate on public blockchains and facilitate the issuance of regulated funds. The platform is structured in three layers: Ethereum (ETH) serves as the settlement base, Memento Blockchain’s ZKsync-based layer-2 processes transactions with zero-knowledge privacy safeguards, and a top-layer interface offers an app store with ready-made fund smart contract templates. This Blockchain-as-a-Service concept allows issuers to launch products without the need to build protocol teams.

To support cross-chain activity, DAMA 2 integrates Axelar Network’s Interchain Token Service, enabling interoperability with more than 70 blockchains. This multichain setup provides issuers with a single dashboard to lock, mint, and burn tokens across networks while preserving fungibility. The litepaper confirms Deutsche Bank’s earlier initiative to address regulatory barriers tied to public blockchains, using ZKsync technology to cut costs and boost efficiency. The partners aim to deliver a minimum viable product in the second half of 2025, though no specific launch date has been given.

Boon-Hiong Chan, Deutsche Bank’s innovation lead for securities and technology advocacy, highlighted how public blockchains have matured for institutional finance and how applied technologies can achieve resilience and compliance through a single platform. He emphasized the importance of familiar workflows and low learning curves for adoption. The litepaper describes modular compliance tools, on-chain investor registries, and expense management features. Privacy is managed through allowlisted wallets and private RPC endpoints, while Axelar’s hub-and-spoke model could isolate compromised chains if necessary.

Sergey Gorbunov, co-founder of Axelar, described DAMA 2 as a compliant pathway for institutions to enter the digital assets space and scale securely across multiple blockchains. He noted that vendor fragmentation and isolated liquidity remain industry challenges. Settlement finality would tie back to Ethereum proofs, and legal agreements would define clear transfer points on layer-2 networks. Nicola Lanteri, CEO of Memento Blockchain, stated that the planned Memento ZK Chain would combine a permissioned sequencer with zero-knowledge proofs to give institutions predictable control while preserving the openness of public blockchain networks.

The litepaper projects that asset managers could tap into an estimated $84 trillion intergenerational wealth transfer by 2045, and positions DAMA 2 as a way to reach digital-native investors. This initiative underscores Deutsche Bank’s commitment to leveraging blockchain technology to enhance the efficiency and compliance of regulated funds, providing a robust framework for institutional adoption in the digital asset space.