Deutsche Bank’s multi-chain asset services pilot, Project DAMA 2, has made significant progress with technical contributions from Memento Blockchain and Interop Labs.
This initiative is part of the Monetary Authority of Singapore (MAS). project guardianaims to evolve operational models for digital asset management, fund distribution, and services through blockchain technology.
Memento Blockchain has developed a fully operational testnet for Memento ZKchain, a publicly permitted blockchain.
The testnet is built on the ZKsync stack with support from Matter Labs and enables cross-chain interoperability through the Axelar network facilitated by Interop Labs.
Memento ZKchain incorporates zero-knowledge technology to enhance security and efficiency.
Key features of Memento ZKchain include KYC, AML, sanctions checks, a digital identity system using Soulbound tokens for investor suitability testing, and a streamlined system with clear audit trails using traditional payment rails. Includes Paymaster functionality for gas fee management, custom built block explorer. It uses the Domani protocol dApp for issuing tokenized funds, for transaction confidentiality and full regulatory oversight.
These innovations enable modular smart contracts to enable secure asset servicing with trustee control and seamless fund distribution across multiple blockchain networks.
Interop Labs played a key role in linking Memento ZKchain’s testnet with Avalanche Fuji and Stellar, enabling full cross-chain connectivity through the Axelar network.
This feature supports integration with over 69 blockchain networks, expanded accessibility, secure scalability, and customization of financial applications.
The project team will focus on the issuance and distribution of tokenized funds across single or multiple blockchains, interoperability of the movement of digital assets and digital cash, and near-instant settlement to enhance asset safety and operational efficiency. We are testing several use cases, including finality.
These advances are aimed at enhancing security, operational efficiency and flexibility for fund managers and investors.
As Project DAMA 2 progresses, discussions are underway to transition to mainnet deployment.
The team is also discussing standardization and integration with other efforts, including: MAS Global Layer 1.
The team is soliciting feedback from the financial sector to support integration and standardization efforts.
Updates will be announced at: Singapore FinTech Festival 2024a live demonstration showing the project’s real-life application.
A comprehensive report is expected to be released in 2025 to engage the industry and pave the way for future implementation.
Featured image credit: Wikipedia
