Deutsche Bank completes trial of tokenized investment platform

According to report On February 21, Deutsche Bank Singapore and Memento Blockchain successfully completed the proof-of-concept phase of the DAMA (Digital Asset Management Access) project, designed to facilitate the management of digital funds investing in tokenized securities. According to the report, asset managers were able to create a digital asset fund with their own token tied to an identity and launch a direct fiat-to-digital transition for users. Institutional investors can then subscribe to the fund through direct token minting, through a decentralized exchange aggregator, or through a built-in marketplace.

As a first step, Deutsche Bank and Memento Blockchain created a decentralized finance (DeFi) platform on Ethereum and a unique non-transferable token (SBT). Using SBT, the platform developers could then verify the wallet owner’s identity and grant them access to investment opportunities without having to ask for their personal information each time. In the meantime, the trust anchor stores Know Your Customer (KYC) checks and accompanying documents off-chain. SBT can also be used to restrict access to services or products that do not meet the tolerable risk or experience of the underlying users.

In order to invest in the fund, institutional investors holding SBT must provide collateral in order to mint and receive tokenized shares of the main digital investment fund of their choice. The tokenized shares can then be exchanged through the built-in digital marketplace for digital assets such as stablecoins. As for asset managers, they can create tokenized funds using a single window on Ethereum testnets using various strategies such as DeFi staking.

Subscription of the DAMA project fund through the DEX aggregator. Source: Memento Blockchain and Deutsche Bank.

To secure assets, Deutsche Bank and Memento Blockchain used MetaMask for the DAMA project. MetaMask is built into the platform as a digital wallet of choice for partners to facilitate the transfer of digital assets. Institutional investors will need to have both SBT in their MetaMask wallet and KYC in order to access the platform’s decentralized applications. As for the next steps, Deustche Bank said it is exploring the possibility of using the DAMA project in Singapore, which currently has 1,100 registered fund managers with $3.36 trillion in total assets under management.

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