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Odaily Planet Daily News: Deutsche Bank AG is focusing on addressing regulatory challenges faced by financial institutions when attempting to use public blockchain, such as the risk of unintentionally trading with criminals or sanctioned entities. The bank launched a beta version of its asset service pilot project Project Dama 2 in November, which includes Layer 2. Boon Hiong Chan, Head of Industry Application Innovation at Deutsche Bank Asia Pacific, stated in an interview that the bank's Layer 2 is connected to Ethereum. Chan stated that public blockchains such as Ethereum are full of risks for regulated lenders. This includes uncertainty about 'who is verifying the transaction', whether transaction fees will be paid to sanctioned entities, and unforeseeable threats of hard forks, while 'using two chains, many regulatory issues should be resolved'. Dama 2 is part of the Monetary Authority of Singapore's "Project Guardian," a program involving 24 large financial institutions aimed at testing methods for tokenizing assets using blockchain technology. Supporters, including Deutsche Bank, believe that blockchain is an opportunity to address the compression of profit margins in financial services. However, there are still doubts about to what extent banks should be involved in the cryptocurrency ecosystem. The Dama 2 platform is partnered with the cryptocurrency company Memento Blockchain Pte. Developed in collaboration with Interop Labs and built using ZKsync technology. The bank hopes to launch it as a minimum viable product next year after obtaining regulatory approval. According to Chan, its Layer 2 component allows banks to freely experiment with public blockchain, allowing them to plan a "more customized list of validators." Other benefits include the possibility of granting regulatory agencies (and only regulatory agencies) "super administrator privileges," which means they can review fund flows when necessary. Chan said, "You no longer rely on L1 to obtain detailed transaction records." (Bloomberg)