Deutsche Bank moves closer to issuing its own digital token
Deutsche Bank joins the stablecoin race
Deutsche Bank is accelerating its expansion into the digital asset space, with a particular focus on stablecoins and tokenized deposits. As global regulatory frameworks evolve and institutional confidence in blockchain technology grows, Germany’s largest bank is actively considering launching its own digital token or participating in a broader industry initiative.
Assessing tokenized deposits
Sabih Behzad, head of digital assets and currencies transformation at Deutsche Bank, told Bloomberg that the bank is also evaluating the development of a proprietary tokenized deposit solution for use in payments. These blockchain-based digital tokens represent bank deposits and aim to improve transaction speed and reduce processing costs.
Regulatory support and participation options
The rise in interest comes as Europe finalizes continent-wide crypto regulations and the U.S. advances its own stablecoin legislation, including the so-called GENIUS Act. Behzad noted that banks now have many avenues to engage in the stablecoin ecosystem—from acting as reserve managers to issuing their own coins either individually or through consortia.
Stablecoins, which are pegged to fiat currencies such as the dollar or euro, along with tokenized deposits, are becoming increasingly popular tools for modernizing the financial system. While many projects have been under development for years, only a few have reached mass adoption. Deutsche Bank aims to shift that trajectory.
Momentum across Europe
Major financial institutions across Europe are taking similar steps. Banco Santander is developing a stablecoin product for customers of its digital bank. Deutsche Bank’s asset manager, DWS Group, has teamed up with Flow Traders and Galaxy Digital to launch a euro-denominated token—signaling the industry’s push toward digital settlement solutions.
Deutsche Bank’s strategy and partnerships
Deutsche Bank’s involvement in global initiatives such as Project Agorá and its strategic investment in the Partior platform highlight its long-term commitment to digital financial infrastructure. In 2023, the bank also partnered with Swiss firm Taurus to develop crypto custody services for institutional clients.
These moves place Deutsche Bank and its partners at the forefront of financial sector transformation, where tokenization is becoming a core element of modern banking.
In late 2024, Deutsche Bank also began developing an Ethereum Layer 2 network using ZKsync technology. The initiative aims to address regulatory challenges for financial institutions using public blockchains, while improving transaction efficiency.
