Author: @AdrianoFeria
Translation: Blockchain in Plain Language
Deutsche Bank recently announced the adoption of the Ethereum Layer2 story, not only because it is starting to embrace Ethereum, but more importantly, this move is part of the "Project Guardian" initiative in Singapore.
Although the media generally focuses on Ethereum's technology, it rarely mentions that Project Guardian has brought together policymakers and major industry participants to jointly develop the direction of Token and digital asset market development. This means that Deutsche Bank's foray into Ethereum L2 is not an isolated attempt, but rather part of a global effort to bring secure and compliant blockchain solutions into the core of traditional finance.
There are two main working groups in Project Guardian:
First, the policymaker group, including the Monetary Authority of Singapore, the Bank of France, and even the International Monetary Fund (IMF), is responsible for setting standards and legal frameworks to ensure that digital asset systems are transparent, trustworthy, and compliant globally.
Secondly, the industry participant group, with members including Deutsche Bank, HSBC, S&P Global, Moody's, OCBC, Fidelity, DBS, JPMorgan, Citi, UBS, Standard Chartered, Franklin Templeton, T. Rowe Price, and BNY Mellon, a total of 27 financial giants. This group provides funding, infrastructure, and technical support to translate these policy frameworks into actual market solutions.
These two groups are jointly developing a blueprint for future compliant large-scale blockchain applications.
It is worth noting that the regulatory compliance requirements of these institutions cannot be met by any single Layer1 blockchain. For institutions that require strict regulation and interoperability, the choice is either to build a private permissioned Layer1 chain or to use the Ethereum L2 ecosystem.
The Ethereum L2 framework has many advantages, which I have detailed in my recent article "The Ethereum Settlement Peak", including Ethereum's reliable trust, powerful development tools, the ability to flexibly adjust performance and data availability to meet enterprise needs, and the opportunity to access the world's largest and most liquid crypto economy, which currently supports over $120 billion in stablecoin circulation (accounting for more than 60% of the global crypto market stablecoin supply).
Now that Deutsche Bank has joined this global collaboration, more Project Guardian members are expected to follow suit. We can foresee that these institutions will launch Ethereum-based L2 solutions and stablecoins, further cementing Ethereum's position as the global compliance settlement layer for the largest financial and tech companies.
In other words, what may appear to be a single company's integration with Ethereum is actually a signal that a global ecosystem of policymakers and industry leaders is focusing on Ethereum L2 infrastructure and seeing it as the best way forward.
Link to the article: https://www.hellobtc.com/kp/du/12/5591.html
Source: https://x.com/AdrianoFeria/status/1869455036880658650
