The German bank is considering launching a stablecoin as the European banking sector gradually opens up to digital assets.
According to a report by Bloomberg, Deutsche Bank is stepping up its involvement in the digital asset space by exploring stablecoin issuance and tokenized deposit solutions.
Sabih Behzad, Deutsche Bank’s Head of Digital Assets and Currencies Transformation, stated that the institution is currently evaluating two strategic options. The first involves developing its own proprietary stablecoin, while the second considers joining a broader consortium initiative within the banking industry.
At the same time, the bank is examining the potential of tokenized deposits — blockchain-based financial instruments that Deutsche Bank believes could enhance the efficiency of transaction settlements. These would represent digital versions of traditional bank deposits.
Deutsche Bank isn’t alone in pursuing this strategy. Banco Santander recently began preliminary work on its own stablecoin and is planning to offer crypto services through its digital banking division. Additionally, Deutsche Bank’s asset management arm, DWS Group, has launched a joint venture with Flow Traders and Galaxy Digital to issue a euro-denominated token.
According to Citigroup projections, the market capitalization of stablecoins is expected to grow significantly, from nearly $240 billion today to over $2 trillion by 2030.
The bank’s participation in Project Agorá — an initiative led by the Bank for International Settlements — further highlights its interest in exploring the role of tokenization in wholesale cross-border payments.
