- Deutsche Bank and Memento Blockchain complete DAMA proof of concept.
- Soulbound Token verifies user identity, grants access to investment opportunities.
- Institutional investors can invest via collateral to mint tokenized shares.
Deutsche Bank Singapore and Memento Blockchain have successfully completed the proof-of-concept phase of Project DAMA (Digital Assets Management Access), which aims to facilitate the management of digital funds investing in tokenized securities, according to a report published on February 21.
Asset managers were able to construct a digital asset fund with its own soulbound token and launch a direct fiat-to-digital on-ramp for users, according to their research. Then, institutional investors could subscribe to the fund via the direct minting of tokens, a decentralized exchange aggregator, or an in-built marketplace.
Deutsche Bank and Memento Blockchain have established a decentralized finance (DeFi) infrastructure on Ethereum (ETH) and a unique, non-transferable Soulbound Token as the initial step. Using the SBT, platform developers could then validate the wallet owner’s identity and provide them with access to investment options without demanding their personal information each time.
In the meantime, a trust anchor keeps know-your-customer (KYC) checks and supplementary papers off-chain. The SBT could potentially be used to restrict access to services or goods that do not align with the risk tolerance or experience of the underlying users.
To invest in a fund, institutional investors holding SBT would give collateral in exchange for tokenized shares of their preferred digital investment fund. Afterwards, tokenized shares may be exchanged for digital assets such as stablecoins via an integrated digital marketplace.
As for asset managers, they can establish tokenized funds utilizing one-window on Ethereum testnets with a number of techniques, such as DeFi staking, to create tokenized funds.
In other news, the Australian government remains committed to developing a regulatory framework for digital assets that promotes innovation and investment while simultaneously safeguarding consumer interests. Blockchain Australia leaders recently provided testimony at a Senate Committee hearing to endorse this initiative.
During the hearing, the focus was on the Treasury Laws Amendment Bill, which included discussions on whether it would be advisable to incorporate Schedule 2 prior to conducting a review of token mapping and taxation. The issue of prematurity was raised, prompting the need for a more detailed examination.
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