Deutsche Bank is investigating the potential of stablecoins and tokenized deposits to bolster its digital asset strategy. The financial institution is contemplating whether to release its own stablecoin or become part of a larger industry initiative. A report by Bloomberg mentioned Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation.

Furthermore, the bank is also examining the possibility of implementing a tokenized deposit system aimed at enhancing payment efficiency. Major U.S. banks are considering a collaborative stablecoin initiative to counter competition from the cryptocurrency sector, including prominent entities like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.

Regulatory clarity in the EU and upcoming U.S. legislation are aiding the swift advancement of stablecoin adoption, with Behzad observing that banks have options ranging from being reserve managers to launching their own digital tokens.

Deutsche Bank’s research indicates that stablecoins are on the brink of broader acceptance as legislative measures progress under the Donald Trump administration. In addition, Germany’s largest bank has invested in cross-border payment firm Partior and is involved in Project Agorá, a government-backed initiative focused on wholesale tokenized payments.