Deutsche Bank Develops Layer-2 Network On Ethereum Using ZKsync

According to CoinDesk, Deutsche Bank is advancing its blockchain capabilities by developing a layer-2 rollup network on Ethereum, utilizing Matter Labs’ ZKsync technology. This initiative, confirmed by Matter Labs, marks a significant step for the banking giant in integrating blockchain technology into its operations. The network is described as a 'public and permissioned L2,' allowing transparency while restricting certain actions to authorized participants. This approach reflects a growing institutional interest in blockchain as cryptocurrency prices soar. The project aims to address regulatory compliance challenges associated with public blockchains in the financial sector. By building a layer-2 network on Ethereum, Deutsche Bank seeks to enhance transaction speed and meet compliance requirements. The ZKsync-based rollup offers banks the opportunity to experiment with blockchain technology, enabling them to choose specific validators for the network. Additionally, it provides regulators with 'super admin rights' to monitor fund movements more closely. Memento Blockchain, a participant in the project, announced the layer-2 initiative on November 6, although it initially garnered limited attention. The network is currently in a test environment and is constructed using ZK Stack, a toolkit that allows developers to create customized blockchains based on ZKsync technology. This layer-2 development is part of Dama 2, a multi-chain initiative spearheaded by Deutsche Bank. Dama 2 is also a component of the Singapore Monetary Authority's Project Guardian, which involves 24 major financial institutions exploring blockchain applications for asset tokenization.