Deutsche Bank is studying stablecoins and tokenized deposits as part of its growing digital assets strategy, joining other major banks exploring blockchain infrastructure for payments and settlement.
The bank is considering whether to issue its own stablecoin or join a broader industry initiative, Bloomberg reported, citing Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation.
It’s also weighing the development of a tokenized deposit system aimed at making payments more efficient, according to the report.
Major banks in the U.S. are currently weighing the launch of a joint stablecoin in a bid to fend off competition from the cryptocurrency space. These reportedly include heavyweights like JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).
Regulatory clarity in the European Union and pending stablecoin legislation in the U.S. have helped accelerate stablecoin adoption. Behzad said banks have options that range from acting as reserve managers to launching their own digital tokens.
Deutsche Bank has said in a research report that stablecoins are on the verge of mainstream adoption as crypto legislation advances under the Donald Trump administration.
Germany’s largest lender has, meanwhile, invested in cross-border payments firm Partior and joined Project Agorá, a central bank-backed initiative focused on wholesale tokenized payments.
Read More: Deutsche Bank Considers Stablecoin or Joining Industry-Led Initiative, Exec
