TL;DR
- Deutsche Bank has partnered with Interop Labs and Memento Blockchain to launch DAMA 2, a fund tokenization framework leveraging Ethereum and ZKsync.
- The system offers Blockchain-as-a-Service capabilities, enabling financial institutions to tokenize traditional assets without heavy technical barriers.
- DAMA 2 also integrates Axelar for advanced interoperability, allowing token operations across 70+ blockchains through a single streamlined platform.
DAMA 2 reflects a growing trend of financial institutions actively experimenting with blockchain infrastructure to meet the demands of digital-native investors. Built on a modular architecture, the framework is composed of three layers: Ethereum as the base for final settlement, ZKsync-powered Layer 2 for privacy-preserving execution, and a user-friendly application layer with customizable smart contract templates. This design allows asset managers, advisors, and fund issuers to quickly deploy and manage tokenized products across multiple chains.
Unlike private blockchain solutions often used in earlier pilots, DAMA 2 fully embraces public blockchain environments while embedding regulatory and privacy features as defaults. This shift is significant, signaling stronger institutional confidence in the maturity of open, decentralized infrastructure for sensitive financial use cases.
Blockchain Interoperability Becomes A Core Institutional Requirement
Through the integration of Axelar Network’s Interchain Token Service, DAMA 2 allows seamless movement of tokenized funds across over 70 blockchain ecosystems. From a single interface, users can issue, burn, or lock assets without requiring siloed operations or bespoke integrations for each network. This focus on interoperability is especially relevant as more institutions seek scalable, cross-chain exposure for their digital asset offerings.
DAMA 2 is also timed with a broader generational wealth transition. With trillions of dollars expected to shift toward digitally savvy investors over the next two decades, the infrastructure aims to reduce complexity in blockchain onboarding while preserving institutional-grade control, security and also regulatory compliance.
Privacy And Compliance Coexist With Public Infrastructure
Memento Blockchain’s ZKsync-based Layer 2 plays a critical role in DAMA 2, using zero-knowledge proofs and a permissioned sequencer to ensure confidential transactions without compromising transparency or composability.
This approach allows for scalable fund issuance that meets operational and legal standards while retaining the benefits of public blockchain ecosystems.
According to Deutsche Bank’s innovation lead, DAMA 2 was designed based on extensive research with potential asset issuers, ensuring that the platform aligns with real-world institutional workflows rather than theoretical models. As tokenization moves beyond experimentation into full production, DAMA 2 offers a practical and scalable path forward for regulated players looking to build confidently in the open blockchain ecosystem.
