Deutsche Bank Deepens Push into Blockchain with Stablecoin and Tokenized Deposit Exploration
Deutsche Bank is expanding its exploration into digital assets, joining a growing roster of global financial institutions looking to harness blockchain technology to modernize payment systems. The German banking heavyweight is actively evaluating the use of stablecoins and tokenized deposits, signaling a broader industry trend toward more efficient, programmable finance.
Stablecoins—digital currencies typically tied to fiat currencies like the euro or U.S. dollar—are increasingly being positioned as a bridge between traditional banking and decentralized systems. Tokenized deposits, on the other hand, represent bank account balances recorded on blockchain networks and issued by regulated financial entities. Both aim to make transactions faster, cheaper, and more flexible.
“We can certainly see the momentum of stablecoins along with a regulatory supportive environment, especially in the US,” said Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation. He added that the bank is considering several pathways, including issuing its own stablecoin, collaborating through industry consortia, or deploying tokenized deposit solutions for international transactions.
Deutsche Bank’s latest moves mirror similar initiatives across the global banking sector. Banco Santander is reportedly assessing a euro-backed stablecoin for its retail customers. Meanwhile, JPMorgan’s blockchain-powered Kinexys network is already facilitating over $2 billion in daily transactions—a small portion of its total volume, but an early indicator of blockchain’s growing utility in mainstream finance.
The German bank is not new to the digital asset space. It has invested in blockchain platform Partior, which focuses on cross-border settlements, and has teamed up with Swiss fintech Taurus to offer institutional-grade custody services for digital assets. Additionally, Deutsche Bank is a participant in Project Agorá, a multi-country initiative led by the Bank for International Settlements (BIS) aimed at reimagining wholesale cross-border payments through tokenization.