Deutsche Bank MD on the most exciting crypto projects for 2024
Banks going big on blockchain infrastructure and neglecting standard crypto trading is the norm going into 2024, but what does that actually mean? For Deutsche Bank MD Boon-Hiong Chan, there are a number of exciting projects on the horizon that could create a tangible impact for banks. In an interview with eFinancialCareers at the Singapore Fintech Festival 2023, he shed light on what those were.
“We’re looking into digital identities,” Chan said. As financial services continues to digitize, “a trusted identifier becomes very important for safety and soundness.” From an efficiency perspective, he says “it can also create a platform business where trust is anchored.” For example, an investor may move from one asset manager to another “without having to go through repetitive KYC” because of their blockchain identity data.
Deutsche Bank isn't the only company interested in blockchain identities. JPMorgan previously hired engineers to work on it in its new Athens crypto lab while Coinbase CEO Brian Armstrong highlighted it as one of the most exciting areas in crypto.
On the asset management front, another development is “mass customization.” Through distributed ledger technology, firms can allow investors to commit to the same fund with different levels of exposure or risk, allowing firms to “cost effectively manage across different allocations and strategies.”
Trading tokens may be somewhat out of fashion but a development that might change things is fund unit tokens. “If a fund unit is tokenized, an investor doesn’t have to go back to a distributor or fund manager to sell it,” Chan says. “You can go peer to peer.” This allows for a “potential collateralizable value, creating a new tradeable asset class.”
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