Dow Bank Ventures into Tokenization Field! Explores Creating Own Stablecoin and Deposit Token

Bloomberg reported that State Street Global, the largest ETF issuer globally, is expressing interest in stablecoins and tokenized deposits. They are said to be interested in collaborating with cryptocurrency payment startups to explore new settlement solutions.

Deutsche Bank Ventures into Tokenization Field

According to Bloomberg, the bank giant with assets under management exceeding $4 trillion is delving into the creation of "stablecoins" and "deposit tokens" to enhance the efficiency and cost of fund transfers:

Deutsche Bank is considering creating its own stablecoins and deposit tokens, and is interested in investing in the crypto payment company Fnality to develop a new blockchain settlement solution.

It is reported that Fnality received a $95 million financing round led by Goldman Sachs last November, with participation from financial giants such as WisdomTree, Nomura Securities, and Deutsche Bank.

Deutsche Bank has always been one of the banks discreetly involved in the crypto field, establishing a dedicated digital finance department in 2021 and providing custody services for multiple Bitcoin ETFs.

Last month, the company also announced a partnership with crypto investment firm Galaxy Digital to drive the creation of new digital asset ETFs.

State Street, issuer of SPY, joins forces with Galaxy to enter the crypto ETF market

Traditional Finance Actively Engaging in RWA

The entry of banks and asset management giants into the field of crypto technology, including stablecoins and deposit tokens, is not new, with examples such as:

• JPMorgan Chase: Launched the Onyx blockchain and its own stablecoin JPM Coin in 2020, and in 2023 introduced the tokenized collateral network TCN

• Goldman Sachs: Went online with the tokenization platform GS DAP in 2023, continuing to issue and trade U.S. funds and European bonds on the platform

• BlackRock: Introduced the USD Institutional Digital Liquidity Fund BUIDL in 2023, tokenizing over $1.8 billion in U.S. public debt to date

• Fidelity: Issued fund tokens on zkSync through crypto bank Sygnum, and partnered with Chainlink to put financial data on-chain

However, it's not just the financial industry; authorities worldwide are exploring or actively working on creating tokenized assets, including project teams established by Taiwan's Financial Supervisory Commission and Hong Kong Monetary Authority, as well as the Monetary Authority of Singapore (MAS) launching the asset tokenization project "Project Guardian" in 2022.

Deutsche Bank Joins Singapore's RWA Project Guardian, Researching Fund Tokenization