By Michael Scott
Deutsche Bank Singapore announced the conclusion of trials for its proof-of-concept platform meant to facilitate transactions for tokenized securities. The Deutsche Bank Singapore statement on February 21 marked the closure of the trial period for its digital assets management access (DAMA) project. The project features a unique design to ease the management of digital funds when investing within tokenized securities.
DAMA’s Superiority in Design Proven in Trial Phase
The report lauded the input of Memento Blockchain in the proof-of-concept trial phase. The report captures evidence of asset managers’ improved capability to establish digital asset funds complete with the soulbound token. Also, the trial report details that asset managers could successfully create fiat-to-digital on-ramps for the target users directly.
The trial phase proved that institutional investors could readily subscribe to the digital assets fund. However, the process findings indicated that such would involve directly minting tokens through a built-in marketplace or decentralized exchange (DEX) aggregator.
Establishing DeFi Staking on Ethereum Testnet
The report reveals that Deutsche Bank collaborated with Memento Blockchain to establish decentralized finance (DeFi). The DeFi utilized the Ethereum ecosystem alongside a soulbound token (SBT). The platform developers leveraged the non-transferable SBT to verify the wallet owner’s identity.
The verified wallet owners would access the available investment opportunities without demanding disclosure of personal information in subsequent sessions. Nevertheless, the platform utilizes trust anchorage to monitor the know-your-customer (KYC) screening and pertinent documents off-chain.
The developers involved in the design and trial phases of the DAMA project indicated that SBT could impose restrictions against services and product access. The February 21 report illustrated that such events occurred when the products and services sought mismatch the user’s risk tolerance and experience levels.
Collateral Necessary for Institutional Investors Access the Investment Fund
The Tuesday report emphasized that investment in the fund obliges the institutional investor with SBT holding to provide collateral. The security would grant the investor access to minting and receiving tokenized shares, constituting the digital investment fund chosen.
The Deutsche Bank Singapore observed that users could leverage the built-in digital marketplace to swap the tokenized shares for other digital assets, including stablecoins. The developers involved in the trial phase lauded the unique design, allowing the asset managers to establish tokenized funds via DeFi staking on the Ethereum testnets.
MetaMask Integrated to Secure the DAMA Platform
The report revealed that Deutsche Bank relied upon MetaMask to reinforce asset security through the input of Memento Blockchain. The report demonstrated that partners integrate MetaMask into the platform as the preferred digital wallet to facilitate digital assets transfer.
Deutsche Bank findings in the report indicate that institutional investors must prove their SBT holdings in the MetaMask wallet and KYC to access the decentralized applications.
Pursuit of Opportunities in Singapore
The Deutsche Bank echoed Memento Blockchain sentiments that Singapore presented numerous opportunities for Project DAMA. In particular, Deutsche Bank observed that Singapore hosts over 1100 authorized fund managers. Besides, DAMA could appeal to the fund managers whose combined portfolio has $3.36 trillion in assets under their watch.
A market outlook by KPMG on Singapore reveals that blockchain and crypto ranked as the preferred destination for fintech investment. The KPMG Pulse report portrayed Singapore as a solid investment destination despite the global market slowdown that characterized the crypto sector in 2022.
The successful completion of the Project DAMA trial phase is timely to attract institutional investors portrayed in the KPMG report as manifesting a preference for non-crypto-based solutions. The shift likely emerges from the crypto contagion that befell most investors following the implosion of Terra, Three Arrows Capital and FTX.
Deutsche Singapore’s projection of Project DAMA benefits from numerous opportunities as investors shift towards reliable, compliant, transparent crypto-focused projects. With the KPMG projecting a slowdown in the investments within crypto-oriented firms, institutional investors could prioritize committing resources in jurisdictions with regulatory clarity.
Project DAMA’s priorities on fund managers could become attractive as the institutional investors shift their focus towards blockchain entities that focus on offering solutions to the SME market.
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