- Deutsche Bank considers issuing stablecoin or joining industry-wide crypto project.
- Stablecoins grow to $246 billion, attracting major banks’ attention globally.
- Deutsche Bank partners with blockchain firms for tokenized payment solutions.
Deutsche Bank is exploring stablecoins and tokenized deposits, showing growing interest in digital finance. According to Bloomberg, the bank is debating whether to put out its own stablecoin or collaborate with an industry-wide stablecoin project. Looking into putting assets on the blockchain is another way to make sure payments are swift and effective. Stablecoins are connected to assets such as the U.S. dollar, which makes their worth stable.
Stablecoins Surge to $246 Billion, Banks Take Notice
Meanwhile, stablecoins have been receiving more interest these days, particularly in the U.S., as regulators are making the environment more suitable. Because of this, banks are now looking at possibilities with stablecoins. According to the bank’s spokesperson, banks can be involved in various ways in this area. Another option is for them to look after reserves or distribute stablecoins by themselves or together with others. Consequently, traditional banks have different tactics to take part in the expanding stablecoin market.
Deutsche Bank has started working with blockchain technology in recent times. The bank decided to support Partior, which works on blockchain technology for worldwide money transfers. It was accepted into the BIS’s Project Agorá, which examined the use of tokens for bigger transactions. Besides, Deutsche Bank teamed up with Taurus to supply digital asset custody solutions. This proves that the bank cares deeply about blockchain and digital asset technologies.
Deutsche Bank researchers pointed out that stablecoins are growing very quickly. There was a major increase from $20 billion in 2020 to $246 billion at present. Because of this growth, stablecoins can now be called important financial assets. Experts expect the formal acceptance of stablecoins by the United States could happen in 2025. This would most likely cause banks and other institutions to use cryptocurrencies more.
Stablecoins are becoming part of the services other large banks are offering. For instance, Bloomberg News mentioned that Banco Santander is planning to start its own stablecoin. Santander is hoping to give its clients cryptocurrency services through its mobile platform. It means that stablecoins are gaining popularity in the banking sector globally.
Deutsche Bank’s Stablecoin Plans Could Transform European Digital Banking
Flow Traders and Galaxy Digital have come together with DWS Group, which belongs to Deutsche Bank, for a new venture. Both intend to make a token that will be denominated in euros. This reveals that European banks are also keen to introduce stablecoins into the digital economic market.
Aside from that, Steven van Rijswijk, ING’s CEO, has also expressed his approval for initiatives to create either a European stablecoin or a database with contributions from several banks. He believes that these projects will increase the use of digital payments and settlements. But at the moment, ING has not announced plans for a stablecoin, proving that banks prefer to act carefully before launching new projects.
Observing how JPMorgan has fared gives an idea of how Deutsche Bank is faring. The company started JPM Coin and built several projects based on blockchain technology. It was shown that big banks can handle digital currencies and at the same time obey regulations. The bank could encounter some problems, such as dealing with security and governance. It is also possible that it would receive new chances in markets and cooperate with new businesses.
Even though Deutsche Bank has yet to declare anything officially, its desire to work with stablecoins and tokenized deposits is significant. It might bring innovation to banking, reform the regulations, and invite more players to the market. Investors and experts should keep an eye on Deutsche Bank, because its actions can guide other banks and influence developments in global financial services.
