German financial major Deutsche Bank has co-authored a crypto research paper on blockchain interoperability and published a detailed press release on it.
Blockchain interoperability has been an important subject of deliberation in the crypto sector. Most crypto experts believe cross-chain interoperability is the key to the wide adoption of blockchains. As a result, this subject has been a point of reflection and research for the entire sector. Current payment systems like SWIFT have also started a digital currency interoperability project. Moreover, support for interoperability has also emerged for the digital pound in the UK.
At this juncture, a crypto research paper on blockchain interoperability has grabbed eyeballs. Deutsche Bank, the German bank, has co-authored the paper with leading crypto firms. Even financial services firms like Mastercard and Citi are a part of this crypto initiative.
In a press release, Deutsche Bank explained how interlinked network models could be useful for multiple blockchains. Meanwhile, it noted how financial institutions could witness better liquidity, accessibility, and other advantages for digital assets with interoperability. It termed how interoperability across blockchains was a ‘necessity.’
Further, the paper provides a roadmap for financial institutions working on tokenization, which have faced issues in this domain. A prominent analyst, Emily Parker, who has worked in global blockchain projects, has chalked out the roadmap.
Anand Rangarajan from Deutsche Bank said, “Multichain asset interoperability and servicing will likely become a necessity for asset servicers as their clients adopt different chains. It will be essential that asset servicers know how to address and service interoperability with scale…”
He also stressed how safety was essential for the sustainable growth of multiple chains.
However, this is not the first time Deutsche Bank has worked in crypto and blockchain. Last year, it launched a crypto custody solution for customers. A few weeks back, it also joined an asset tokenization project in Singapore.
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