Deutsche Bank considers stablecoin issuance

Germany's largest bank is researching stablecoins and tokenized deposits as part of its expanding digital asset development strategy, while also joining other major banks in exploring blockchain infrastructure for payments and settlements.

According to Bloomberg, citing Sabih Behzad, the Director of Digital Asset and Currency Transformation at Deutsche Bank, the bank is considering the possibility of issuing its own stablecoin or participating in a joint industry initiative.

The bank is also considering developing a tokenized deposit system to enhance payment efficiency, according to the report.

Deutsche BankThe major banks in the US are currently considering issuing a common stablecoin to counter competition from the cryptocurrency space. These banks include major names such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.

Clarity on regulations in the European Union along with the stablecoin bill being reviewed in the U.S. has contributed to the adoption of stablecoins. Behzad stated that banks have many options, from reserve management roles to issuing their own digital tokens.

Earlier, Deutsche Bank also stated in a research report that stablecoins are on the path to widespread acceptance as cryptocurrency regulations progress under President Donald Trump's administration.

In addition, the largest bank in Germany has invested in the cross-border payment company Partior and is participating in Project Agorá – an initiative supported by the central bank focused on large-scale tokenized payments.

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