Deutsche Bank joins Ethereum L2, will financial giants promote the popularization of encryption technology?

Written by: @AdrianoFeria

Translation: vernacular blockchain

The story behind Deutsche Bank’s recent announcement of adopting Ethereum Layer 2 is not only that it has begun to embrace Ethereum, but more importantly, this move is part of Singapore’s “Project Guardian” plan .

Although the media generally focuses on Ethereum's technology, it is rarely mentioned that Project Guardian unites policymakers and major industry players to jointly formulate the development direction of tokenization and digital asset markets. This means that Deutsche Bank’s involvement in Ethereum L2 is not an isolated attempt, but part of the global push for secure and compliant blockchain solutions to enter the core of traditional finance.

In Project Guardian, there are two main working groups:

The first is the group of policymakers , including the Monetary Authority of Singapore, the Bank of France, and even the International Monetary Fund (IMF), who are responsible for setting standards and legal frameworks to ensure that digital asset systems are transparent, trustworthy, and compliant globally. regulatory requirements.

Next is the Industry Players Group , which includes Deutsche Bank, HSBC, S&P Global, Moody's, OCBC Bank, Fidelity, DBS, JP Morgan, Citi, UBS, Standard Chartered, Franklin Templeton, T. Rowe Price, BNY Mellon and other 27 financial giants. This group provides funding, infrastructure and technical support to translate these policy frameworks into practical market solutions.

The two groups are working together to develop a blueprint for future compliant large-scale blockchain applications.

It is worth noting that the regulatory compliance requirements required by these institutions cannot be met by any single Layer 1 blockchain. For institutions that require strict regulation and interoperability, the choice is either to build a private permissioned Layer 1 chain or to use Ethereum's L2 ecosystem.

Ethereum's L2 framework has many advantages, which have been elaborated in my recent article "The Peak of Ethereum Settlement", including Ethereum's reliable trust, powerful development tools, and the ability to flexibly adjust performance and data availability to meet enterprise needs. capabilities, and access to the world's largest and most liquid crypto economy, which currently supports more than $120 billion in stablecoin circulation (accounting for more than 60% of the global crypto market's stablecoin supply).

Now that Deutsche Bank has joined this global collaboration, more members of Project Guardian are expected to follow. We can foresee that these institutions will launch L2 solutions and stablecoins based on Ethereum, which will further consolidate Ethereum's position as a compliant settlement layer for the world's largest financial and technology enterprises.

In other words, what may appear to be one company plugging into Ethereum is actually a signal that a global ecosystem of policymakers and industry leaders is focusing on Ethereum L2 infrastructure and viewing it as The best path forward for the future.