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Deutsche Bank completes trial of tokenised investment platform
February 22, 2023
Per the report, asset managers were able to create a digital asset fund with its own soulbound token and launch a direct fiat-to-digital on-ramp for users. Institutional investors could then subscribe to the fund through the direct minting of tokens, via a decentralized exchange aggregator or through a built-in marketplace.
As the first step, Deutsche Bank and Memento Blockchain created a decentralized finance (DeFi) platform on Ethereum and a unique, non-transferable soulbound token (SBT). Using the SBT, platform developers could then verify the identity of the wallet owner and grant them access to investment opportunities without requiring their personal information each time.
Meanwhile, a trust anchor keeps Know Your Customer (KYC) checks and accompanying documents off-chain. The SBT could also be used to restrict access to services or products that do not match the underlying users’ risk tolerance or experience.
To invest in a fund, the institutional investors holding the SBT would provide collateral in order to mint and receive tokenized shares of the underlying digital investment fund of choice. Tokenized shares can then be swapped via a built-in digital marketplace for digital assets, such as stablecoins.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/