Key Takeaways:
Deutsche Bank is delving into the issuance of a stablecoin and the creation of tokenized deposit solutions aimed at enhancing payment systems.
Increased regulatory clarity within the EU and US is significantly boosting institutional interest in stablecoins.
Through strategic partnerships, Deutsche Bank is enhancing its cryptocurrency capabilities.
Deutsche Bank is advancing its presence in the digital assets landscape, as the largest lender in Europe investigates the potential of stablecoins and tokenized deposits to transform payment processing.
According to Sabih Behzad, the bank’s head of digital assets and currencies transformation, Deutsche Bank is considering whether to create its own stablecoin or to engage in a broader industry initiative, as shared in a Bloomberg interview.
Additionally, the bank is evaluating the feasibility of tokenized deposits that could facilitate more efficient transaction settlements.
The Rising Appeal of Stablecoins as a Payment Solution
Stablecoins, linked to fiat currencies like the euro and dollar, alongside tokenized deposits—digital representations of traditional bank deposits—are gaining popularity as financial institutions seek quicker and more cost-effective payment solutions.
While these technologies have been under development for some time, there are still limited large-scale applications in practice.
“We can certainly see the momentum of stablecoins along with a regulatory supportive environment, especially in the US,” Behzad remarked.
“Banks have a wide variety of options available—everything from acting as a reserve manager to issuing their own stablecoin, either independently or in a consortium.”
The evolving regulatory landscape is aiding confidence among banks to engage with the sector. With comprehensive EU regulations and stablecoin legislation progressing in the US Congress, financial institutions are increasingly optimistic about exploring this market.
Deutsche Bank is examining stablecoins and tokenized deposits, considering options such as issuing its own token or joining an industrywide initiative.https://t.co/QkJe9NRAX4 pic.twitter.com/R9cb2TVbuF
— ICO Drops (@ICODrops) June 7, 2025
Deutsche Bank is not the only player making strides in this area. Spanish bank Banco Santander has recently commenced preliminary development on a stablecoin and is planning to introduce cryptocurrency services through its digital banking division.
In addition, Deutsche Bank’s asset management branch, DWS Group, has formed a joint venture with Flow Traders and Galaxy Digital to launch a euro-denominated token.
ING CEO Steven van Rijswijk expressed his support this week for the concept of a European stablecoin, especially for settlement purposes within an increasingly digital marketplace.
Simultaneously, JPMorgan’s Kinexys network, which enables blockchain-based payments, is now processing over $2 billion daily. However, this volume accounts for only a fractional segment of JPMorgan’s total daily payment flows, which reach $10 trillion.
Deutsche Bank Intensifies Its Commitment to Crypto
Deutsche Bank has been steadily enhancing its capabilities in digital assets.
Last year, the bank made an investment in Partior, a platform focused on blockchain-based cross-border payments.
In 2023, it teamed up with the Swiss blockchain company Taurus to provide digital asset custody services tailored for institutional clients.
Furthermore, the bank is involved in Project Agorá, an initiative spearheaded by the Bank for International Settlements in collaboration with multiple central banks, aimed at investigating the impact of tokenization on wholesale cross-border payments.
Recent forecasts from Citigroup anticipate a dramatic expansion in the stablecoin market, predicting that its total market capitalization could surge from nearly $240 billion today to over $2 trillion by 2030.
This growth is expected to be driven by new regulatory frameworks and heightened interest from financial institutions and the public sector alike.
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