Deutsche Bank is weighing new steps in digital assets as regulators create clearer rules.
In an interview, the bank’s head of digital assets, Sabih Behzad, said that Deutsche Bank is studying stablecoins and tokenised deposits.
The effort comes as more countries establish frameworks for this market.
Plans for Stablecoins
Behzad said banks can take on various roles, from managing reserves to issuing a stablecoin alone or with others. He sees strong momentum for stablecoins, especially in the United States.
He noted that the supportive regulatory atmosphere makes this a good time to get involved. Deutsche Bank is deciding whether to create its own stablecoin or join an existing industry project.
Stablecoins are a type of cryptocurrency made to keep a steady value by linking to assets such as the U.S. dollar or gold. Their value does not swing like other digital tokens. This stability has helped their market grow quickly.
A recent report by Deutsche Bank analysts found that the market value of stablecoins jumped from $20 billion in 2020 to $246 billion. They said stablecoins are on track to become key assets, and new U.S. rules could give them a boost in 2025.
Also Read: Binance Dominates 2025 Stablecoin Market With 59% Share, Attracting $180 Billion Year-to-Date
Exploring Tokenised Deposits
In addition to stablecoins, the bank wants to build a tokenised deposit solution. Tokenised deposits record bank balances on a blockchain. This can make digital transactions faster and more secure.
By converting deposits into tokens, banks can speed up payments and reduce paperwork. Deutsche Bank sees tokenised deposits as a way to offer clients more efficient services.
Last year, Deutsche Bank teamed up with Taurus for digital asset services. That alliance brought Taurus’s custody and tokenisation technology to the bank.
Paul Maley, global head of securities services at Deutsche Bank, said this move acknowledges that the digital space may hold trillions of dollars. He stressed that custodians must evolve to serve their clients in this emerging market.
Industry Context
Banks around the world are keeping a close eye on digital assets. Many see stablecoins as a stepping stone to wider blockchain use. Regulators are starting to set rules that aim to protect clients while encouraging innovation.
With clear guidelines, more banks may feel safe joining the market. Deutsche Bank’s cautious approach reflects its wish to move forward without unnecessary risk.
Interest from Other Companies
Uber Technologies Inc. also announced it is looking at stablecoins for payments. At the Bloomberg Technology Summit in San Francisco, CEO Dara Khosrowshahi said Uber is assessing whether stablecoins can speed up cross-border payments and help drivers get paid faster. If Uber adopts stablecoins, it could push other big firms to consider them too.
Deutsche Bank’s interest in stablecoins and tokenised deposits shows how traditional banks are adapting. By studying these options now, the bank aims to be ready if the market grows.