Deutsche Bank adopts Ethereum Layer 2 technology, marking its entry into Singapore's "Project Guardian" initiative, promoting global financial institutions to collaboratively create compliant and secure blockchain solutions.

Author: @AdrianoFeria

Translation: Blockchain in Plain Language

The recent announcement by Deutsche Bank regarding its adoption of Ethereum Layer 2 has a backstory that is not just about embracing Ethereum; more importantly, this move is part of Singapore's "Project Guardian."

While the media generally focuses on the technology of Ethereum, it rarely mentions that Project Guardian brings together policymakers and key industry players to collaboratively shape the development direction of tokenization and digital asset markets. This means that Deutsche Bank's foray into Ethereum L2 is not an isolated attempt but part of a global effort to integrate secure and compliant blockchain solutions into the core of traditional finance.

In Project Guardian, there are primarily two working groups:

First is the policymakers group, which includes the Monetary Authority of Singapore, the Bank of France, and even the International Monetary Fund (IMF). They are responsible for setting standards and legal frameworks to ensure that digital asset systems are transparent, trustworthy, and compliant globally.

Second is the industry participants group, which includes Deutsche Bank, HSBC, S&P Global, Moody's, OCBC Bank, Fidelity, DBS Bank, JPMorgan, Citigroup, UBS, Standard Chartered, Franklin Templeton, T. Rowe Price, BNY Mellon, and 27 other financial giants. This group provides funding, infrastructure, and technical support to translate these policy frameworks into practical market solutions.

These two groups are collaboratively developing a blueprint for large-scale compliant blockchain applications in the future.

It is noteworthy that the regulatory compliance requirements needed by these institutions cannot be met by any single Layer 1 blockchain. For institutions that require strict regulation and interoperability, the choice is either to build a private permissioned Layer 1 chain or to utilize the Ethereum L2 ecosystem.

The Ethereum L2 framework has many advantages, which I have detailed in my recent article "The Pinnacle of Ethereum Settlement," including Ethereum's reliable trust, powerful development tools, the ability to flexibly adjust performance and data availability to meet enterprise needs, and the opportunity to access the world's largest and most liquid crypto economy, which currently supports over $120 billion in stablecoin circulation (accounting for over 60% of the global crypto market's stablecoin supply).

Now that Deutsche Bank has joined this global collaboration, it is expected that more members of Project Guardian will follow suit. We can foresee that these institutions will launch Ethereum-based L2 solutions and stablecoins, further solidifying Ethereum's position as the compliance settlement layer for the world's largest financial and technology enterprises.

In other words, while it may seem on the surface that a single company is connecting to Ethereum, in reality, this is a signal indicating that a global ecosystem composed of policymakers and industry leaders is focusing on Ethereum L2 infrastructure and viewing it as the best path forward for the future.

Article link: https://www.hellobtc.com/kp/du/12/5591.html

Source: https://x.com/AdrianoFeria/status/1869455036880658650

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