Deutsche Bank is evaluating stablecoin issuance and developing a tokenized deposit model for payment efficiency.
The bank has invested in blockchain firms and joined global projects like Project Agorá to support tokenized payments.
JPMorgan and Santander, are also testing blockchain-based transactions and euro-pegged stablecoins.
Deutsche Bank is expanding its focus on blockchain-based financial instruments, examining both stablecoins and tokenized deposits. According to a Bloomberg report, the Frankfurt-based institution is reviewing several options, including the potential issuance of its own token or joining a collaborative industry effort. These efforts form part of a broader trend among global financial firms exploring blockchain solutions for payment efficiency.
Exploration Includes Tokenized Payments and Internal Solutions
According to Sabih Behzad, Head of Digital Assets and Currencies Transformation at Deutsche Bank, the firm is assessing various digital token strategies. These include the possible launch of a proprietary stablecoin or involvement in a consortium-led project.
The bank is also working on a tokenized deposit model aimed at enhancing payment workflows. Such deposits represent customer balances recorded directly on a blockchain by regulated financial institutions. These developments come amid increased regulatory activity.
The European Union has implemented region-wide digital asset rules. Meanwhile, the United States Congress is reviewing new stablecoin legislation. This environment has led more banks to investigate blockchain’s role in cross-border and real-time settlement processes.
Industry Peers Expand Blockchain Involvement
Several banks are also participating in the stablecoin transition. Banco Santander is developing early-stage plans to provide retail clients with cryptocurrency access through its digital platform. JPMorgan Chase, through its Kinexys network, processes over $2 billion in daily blockchain-based transactions. That total remains small compared to the firm’s overall daily payment volume of $10 trillion.
Additionally, DWS Group, Deutsche Bank’s asset management arm has joined Flow Traders and Galaxy Digital to form a company issuing euro-pegged tokens. ING Groep’s CEO, Steven van Rijswijk, acknowledged the relevance of a European stablecoin for settlement use cases, though the bank has not announced specific projects.
Investments and Collaborations Advance Infrastructure
Deutsche Bank’s blockchain involvement also includes financial support for Partior, a cross-border payment settlement firm using distributed ledger technology. In 2023, Deutsche Bank entered a custody partnership with Swiss blockchain provider Taurus.
The agreement focuses on providing digital-asset storage solutions for institutional investors. The bank is also part of Project Agorá, a multi-bank initiative led by the Bank for International Settlements. The project involves central banks and commercial lenders collaborating on the tokenization of wholesale cross-border payment systems.
Deutsche Bank’s actions reflect a growing interest in integrating blockchain tools into traditional finance structures. The bank is actively testing use cases and evaluating operational models that include tokenized liabilities and blockchain-based payment rails within regulated frameworks.
