Deutsche Bank Charts Course Toward Digital Currency Integration
Deutsche Bank is actively assessing the viability of stablecoins and tokenized deposits, signalling a strategic shift towards digital finance. Sabih Behzad, the bank's Head of Digital Assets and Currencies Transformation, confirmed that the institution is considering issuing its own stablecoin or participating in a broader industry initiative.
This exploration aligns with the bank's broader efforts to modernize its payment systems and embrace blockchain technology. Behzad noted the increasing momentum of stablecoins, particularly within regulatory environments that are becoming more supportive, especially in the United States. He outlined that banks have various options in engaging with the stablecoin industry, ranging from acting as reserve managers to issuing their own stablecoins, either independently or as part of a consortium.
In addition to stablecoins, Deutsche Bank is delving into tokenized deposit solutions aimed at enhancing payment use cases. These solutions involve digitizing traditional bank deposits using blockchain technology, potentially streamlining transactions and reducing costs. The bank has already conducted experiments in this domain, collaborating with UBS to simulate tokenized deposit payments. These trials utilized the Bundesbank's Trigger Solution, enabling blockchain-based systems to link to the central bank's payment infrastructure, facilitating seamless interbank settlements.
ADVERTISEMENT
Deutsche Bank's initiatives are part of a broader industry trend toward embracing digital assets and blockchain technology. The bank is participating in various projects, including Project Agorá, which aims to improve cross-border payments using tokenized assets. These efforts reflect a growing recognition among financial institutions of the potential benefits of digital currencies and tokenization in enhancing efficiency and creating new business models.
The bank's exploration of stablecoins and tokenized deposits also coincides with evolving regulatory landscapes. In the European Union, the Markets in Crypto-Assets regulation is shaping the framework for digital assets, while in the United States, proposed legislation like the STABLE Act and the GENIUS Act are focusing on transparency, fully backed reserves, and anti-money laundering compliance. These regulatory developments are influencing how banks approach digital currencies and related technologies.
Behzad emphasized the importance of a comprehensive approach to digital asset integration, highlighting the need for robust infrastructure encompassing issuance, trading, settlement, and custody. He pointed out that while tokenization offers significant opportunities, successful adoption requires 24/7 operations and advanced risk management, leveraging programmability and composability for maximum potential.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
16 hours ago
- Arabian Post
Deutsche Bank Charts Course Toward Digital Currency Integration
Deutsche Bank is actively assessing the viability of stablecoins and tokenized deposits, signalling a strategic shift towards digital finance. Sabih Behzad, the bank's Head of Digital Assets and Currencies Transformation, confirmed that the institution is considering issuing its own stablecoin or participating in a broader industry initiative. This exploration aligns with the bank's broader efforts to modernize its payment systems and embrace blockchain technology. Behzad noted the increasing momentum of stablecoins, particularly within regulatory environments that are becoming more supportive, especially in the United States. He outlined that banks have various options in engaging with the stablecoin industry, ranging from acting as reserve managers to issuing their own stablecoins, either independently or as part of a consortium. In addition to stablecoins, Deutsche Bank is delving into tokenized deposit solutions aimed at enhancing payment use cases. These solutions involve digitizing traditional bank deposits using blockchain technology, potentially streamlining transactions and reducing costs. The bank has already conducted experiments in this domain, collaborating with UBS to simulate tokenized deposit payments. These trials utilized the Bundesbank's Trigger Solution, enabling blockchain-based systems to link to the central bank's payment infrastructure, facilitating seamless interbank settlements. ADVERTISEMENT Deutsche Bank's initiatives are part of a broader industry trend toward embracing digital assets and blockchain technology. The bank is participating in various projects, including Project Agorá, which aims to improve cross-border payments using tokenized assets. These efforts reflect a growing recognition among financial institutions of the potential benefits of digital currencies and tokenization in enhancing efficiency and creating new business models. The bank's exploration of stablecoins and tokenized deposits also coincides with evolving regulatory landscapes. In the European Union, the Markets in Crypto-Assets regulation is shaping the framework for digital assets, while in the United States, proposed legislation like the STABLE Act and the GENIUS Act are focusing on transparency, fully backed reserves, and anti-money laundering compliance. These regulatory developments are influencing how banks approach digital currencies and related technologies. Behzad emphasized the importance of a comprehensive approach to digital asset integration, highlighting the need for robust infrastructure encompassing issuance, trading, settlement, and custody. He pointed out that while tokenization offers significant opportunities, successful adoption requires 24/7 operations and advanced risk management, leveraging programmability and composability for maximum potential.
Zawya
2 days ago
- Zawya
ECB to cut rates again as the case builds for a summer pause
FRANKFURT - The European Central Bank is almost certain to cut interest rates again on Thursday and keep all options on the table for subsequent meetings, even as the case grows for a pause in its year-long easing cycle. The ECB has cut rates seven times in 13 months as inflation eased from post-pandemic highs, seeking to prop up a euro zone economy that was struggling even before erratic U.S. economic and trade policy dealt it yet another blow. With inflation now safely in line with its 2% target and a cut flagged by a host of policymakers, Thursday's decision will be uncontroversial, with the focus on what signals ECB President Christine Lagarde might send about policy ahead. Investors are already pricing in a pause in July, and some conservative policymakers have advocated a break to give the ECB a chance to reassess how exceptional uncertainty and policy upheaval both at home and abroad will shift the outlook. "Getting the hawks to support a June cut may require a hint of conditional patience: an implicit willingness to pause in July and wait until September before easing again, as long as there were no major downside surprises in the meantime," Deutsche Bank analysts said in a note. The case for a pause rests on the premise that the short- and medium-term outlooks for the 20-country currency bloc differ greatly and may require a different policy response. Inflation could dip in the short term, possibly even below the ECB's target, but increased spending and higher trade barriers could add to price pressures later. The added complication is monetary policy impacts the economy with a 12-to-18 month lag, so that support approved now could be giving help to a bloc that no longer needs it. A cut on Thursday would take the deposit rate to 2.0%, which the ECB considers "neutral" - no longer holding back the economy but not yet stimulating it either. DIVERGENT OUTLOOK Acknowledging near-term weakness, the ECB is expected to cut both its growth and inflation projections for next year. U.S. President Donald Trump's trade war is already damaging activity and will have a lasting impact even if an amicable resolution is found, given the hit to confidence and investment. This sluggish growth, along with lower energy costs and a strong euro, will curb price pressures. "Uncertainty around tariffs is extremely elevated, and that is not conducive to firms taking longer-term decisions around investment and hiring," Investec economist Sandra Horsfield said. "In the near term (that) will be a disinflationary force in its own right, quite irrespective of where tariffs eventually settle." Most economists think inflation could fall below the ECB's 2% target next year, triggering memories of the pre-pandemic decade when price growth persistently undershot 2%. Further ahead, the outlook changes significantly. The European Union is likely to retaliate against any permanent U.S. tariff, raising the cost of international trade. Firms may meanwhile relocate some activity to avoid trade barriers but changes to corporate value chains are also likely to raise costs. Higher European defence spending, particularly by Germany, and the cost of the green transition could add to inflation while a shrinking workforce as the bloc's population ages will keep wage pressures elevated. "We think the window for ECB rate cuts will close over the late summer," UBS economist Reinhard Cluse said. "We believe the ECB might have to hike rates again in late 2026 to counter rising inflation pressure in 2027, amid a euro zone - German - labour market that is subject to structural tightness during the demographic transition." (Editing by Catherine Evans)
Arabian Post
3 days ago
- Arabian Post
Tether Strengthens Global Footprint as U.S. Tightens Crypto Regulations
Tether, the issuer of the world's most widely used stablecoin USDT, is intensifying its focus on emerging markets across Asia and Latin America, as U.S. lawmakers advance stringent legislation that could reshape the digital asset landscape. From January 2024 to February 2025, USDT accounted for between 62% and 91% of global stablecoin payment volumes, with Asia and Latin America leading adoption. Singapore, Hong Kong, and Japan collectively represented 36.3% of global stablecoin traffic, while the United States trailed at 18.7%. Tether CEO Paolo Ardoino reaffirmed the company's commitment to these regions, stating that the firm will continue prioritizing emerging markets outside the U.S., despite regulatory progress and a pro-crypto administration. Ardoino emphasized that the company sees more opportunity abroad than under strict upcoming U.S. laws. ADVERTISEMENT In a strategic move to deepen its presence in Latin America, Tether announced a significant investment in Orionx, a Chile-based cryptocurrency exchange and financial infrastructure firm. Orionx operates across Chile, Peru, Colombia, and Mexico, offering services such as cross-border payments, remittances, and treasury solutions. The investment aims to enhance Orionx's technological capabilities and scale stablecoin-powered infrastructure throughout the region. Ardoino highlighted the importance of this partnership, noting that the investment supports a high-impact company and advances Tether's broader vision of making stablecoin-powered financial tools accessible to underserved communities across Latin America. The surge in stablecoin adoption in Latin America is attributed to economic instability and high inflation rates in countries like Argentina and Brazil. Stablecoins offer a more stable store of value and a means to conduct transactions without relying on volatile local currencies. Tether's USDT has become a preferred option for everyday needs such as saving, sending money to family, and conducting business transactions. Meanwhile, in the United States, the regulatory landscape for stablecoins is undergoing significant changes. The Senate is advancing the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which introduces stricter regulations on stablecoin issuers, focusing on consumer protection, national security, and financial system integrity. Key provisions include prohibiting yield offerings by stablecoins, mandating audits, and enhancing anti-money laundering protocols. Despite the U.S. administration's pro-crypto stance, with President Donald Trump and Vice President JD Vance advocating for the industry, the GENIUS Act reflects a bipartisan effort to establish a robust regulatory framework. The act has garnered support in the Senate, passing a motion to proceed with a 69-31 vote. However, the legislation has sparked debate among lawmakers. Some Democrats express concerns over potential conflicts of interest due to the Trump family's direct involvement in crypto ventures. Senators Chris Murphy and Elizabeth Warren have opposed the bill on ethical grounds, while others like Senators Cory Booker and Kirsten Gillibrand support it, emphasizing the need for consumer protection and clearer crypto regulations.
