Banking giant Deutsche Bank is advancing its blockchain efforts by developing a layer-2 rollup network on Ethereum utilizing the ZKsync technology from Matter Labs.

According to a report by Bloomberg, the project was confirmed by a representative from Matter Labs. Omar Azhar mentioned that the chain will be “a public and permissioned L2.” When asked for details, he referred to another project contributor, Memento Blockchain, which did not provide comments on the matter.

The project highlights a resurgence in interest for blockchain technology by institutions, as cryptocurrency prices reach record highs and resonate with earlier enterprise blockchain systems.

This initiative comes in tandem with Deutsche Bank’s approach to mitigate regulatory compliance challenges inherent in public blockchains. As mentioned in the Bloomberg report, these compliant solutions are critical for financial institutions operating within regulatory frameworks.

The ZKsync-enabled rollup allows banks to explore blockchain technology while managing validator control, as stated by Chan. He noted that this setup could enhance transaction speeds while fulfilling compliance requirements by providing regulators with oversight capabilities.

Memento Blockchain publicized this L2 project on November 6, though it initially attracted little attention. Currently, it operates within a test network environment, leveraging ZK Stack—a toolkit for developers to create tailored blockchain solutions.

This layer-2 network forms part of Dama 2, an initiative led by Deutsche Bank under the Singapore Monetary Authority’s Project Guardian, aimed at tokenizing assets through blockchain technology.