Deutsche Bank unveils institutional tokenization stack to fast-track regulated funds

Deutsche Bank, Memento Blockchain, and Interop Labs published a litepaper on June 17 outlining plans for Digital Asset Management Access 2 (DAMA 2), a tokenization platform intended to operate on public blockchains and facilitate the issuance of regulated funds.

According to the paper, DAMA 2 would link three layers: Ethereum (ETH) would act as the settlement base, Memento Blockchain’s ZKsync-based layer-2 would process transactions with zero-knowledge privacy safeguards, and a top-layer interface would offer an app store with ready-made fund smart contract templates.

The concept is framed as Blockchain-as-a-Service, allowing issuers to launch products without the need to build protocol teams.

To support cross-chain activity, DAMA 2 would integrate Axelar Network’s Interchain Token Service, enabling interoperability with more than 70 blockchains. This multichain setup would give issuers a single dashboard to lock, mint, and burn tokens across networks while preserving fungibility.

The litepaper confirms Deutsche Bank’s earlier initiative, first reported on Dec. 17 last year, to address regulatory barriers tied to public blockchains, using ZKsync technology to cut costs and boost efficiency.

The partners expect to deliver a minimum viable product in the second half of 2025, though no specific launch date has been given.

Regulatory alignment and rollout

Boon-Hiong Chan, Deutsche Bank’s innovation lead for securities and technology advocacy, said the project demonstrates how public blockchains have matured for institutional finance and how applied technologies can achieve resilience and compliance through a single platform. He added that familiar workflows and low learning curves remain essential for adoption.

The litepaper describes modular compliance tools, on-chain investor registries, and expense management features. Privacy would be managed through allowlisted wallets and private RPC endpoints, while Axelar’s hub-and-spoke model could isolate compromised chains if necessary.

Axelar co-founder Sergey Gorbunov called DAMA 2 a compliant pathway for institutions to enter the digital assets space and scale securely across multiple blockchains, noting 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, said 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, citing Cerulli Associates, and positions DAMA 2 as a way to reach digital-native investors.

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