{"id":79772,"date":"2024-05-29T05:24:48","date_gmt":"2024-05-29T09:24:48","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=79772"},"modified":"2024-05-29T05:26:24","modified_gmt":"2024-05-29T09:26:24","slug":"deutsche-bank-to-use-blockchain-to-reduce-margin-compression","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/deutsche-bank-to-use-blockchain-to-reduce-margin-compression\/","title":{"rendered":"Deutsche Bank To Use Blockchain to Reduce Margin Compression"},"content":{"rendered":"\n

With passive investment products influencing\u00a0fee revenues, Deutsche Bank<\/a> is looking to innovate and adapt to shifting market dynamics by leveraging blockchain technology.<\/p>\n\n\n\n

\"Deutsche<\/figure>\n\n\n\n

Deutsche Bank AG, a German banking giant, intends to implement blockchain technology to address margin compression issues throughout the financial services industry.<\/p>\n\n\n\n

Consequently, the bank has initiated testing of a platform that operates on the Ethereum blockchain.<\/p>\n\n\n\n

However, leveraging Project Guardian, an initiative of the Monetary Authority of Singapore, the platform offers digital services for tokenized funds.<\/p>\n\n\n\n

This project aims to explore the potential benefits of efficiency and liquidity that blockchain technology may provide.<\/p>\n\n\n\n

Deutsche Bank Seeks to Address Margin Pressure<\/h2>\n\n\n\n

As the market adoption of passive investment products increases, fund managers continue to experience a decrease in fee revenue.<\/p>\n\n\n\n

Meanwhile, the average asset management fee decreased by 22 basis points in 2023, from 25 basis points in 2015 and an additional 26 basis points in 2010, according to a study by the Boston Consulting Group.<\/p>\n\n\n\n

Project Guardian is a collaborative effort between financial institutions, policymakers, and asset managers to examine the potential uses of tokenization in the foreign exchange, fixed-income, and asset management industries.<\/p>\n\n\n\n

Under the direction of the Monetary Authority of Singapore<\/a>, Project Guardian aims to investigate the potential efficiency and liquidity benefits that blockchain technology may provide.<\/p>\n\n\n\n

Moreover, Anand Rengarajan, Deutsche Bank's head of securities in Asia Pacific, commented on the matter:<\/p>\n\n\n\n

\n

“It will help us stay relevant because, with the kind of margin compression impacting the overall financial services industry, the only way one can survive is by innovating.”<\/p>\n<\/blockquote>\n\n\n\n

He added that the banking giant can reduce transaction times, costs, and risks by leveraging blockchain and smart contract solutions.<\/p>\n\n\n\n

An Examination of Tokenized Fund Services<\/h2>\n\n\n\n

Deutsche Bank is to introduce record-keeping services to help tokenized fund issuers manage investors, custody arrangements, and values.<\/p>\n\n\n\n

As stated by Rengarajan, this initiative demonstrates the bank's dedication to utilizing blockchain technology to improve operational effectiveness.<\/p>\n\n\n\n

Interoperability is a primary focus in the platform's design, guaranteeing accessibility for fund managers irrespective of the blockchain technology\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> that underpins it.<\/p>\n\n\n\n

Despite being in the proof-of-concept phase currently, Rengarajan is optimistic about the project's potential for commercialization in the future. His further statement was:<\/p>\n\n\n\n

“We anticipate that the investments made over the next two to three years, alongside previous endeavors, will pave the way for a promising commercial future.”<\/p>\n\n\n\n

Deutsche Bank partnered with Taurus SA, a Swiss crypto technology firm, to initiate the development of a digital-asset custody service in a collaborative effort last year.<\/p>\n\n\n\n

The banking giant also referred to Bitcoin as an important asset class last month.<\/p>\n","protected":false},"excerpt":{"rendered":"

With passive investment products influencing\u00a0fee revenues, Deutsche Bank is looking to innovate and adapt to shifting market dynamics by leveraging blockchain technology. Deutsche Bank AG, a German banking giant, intends to implement blockchain technology to address margin compression issues throughout the financial services industry. Consequently, the bank has initiated testing of a platform that operates […]<\/p>\n","protected":false},"author":56,"featured_media":79774,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,130],"tags":[202,4637,19757,19512],"class_list":["post-79772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-blockchain-news","tag-blockchain","tag-deutsche-bank","tag-margin-compression","tag-project-guardian"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/Deutsche-Bank-To-Use-Blockchain-to-Reduce-Margin-Compression.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/79772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=79772"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/79772\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/79774"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=79772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=79772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=79772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}