Deutsche Bank’s multi-chain asset servicing pilot, Project DAMA 2, has taken a huge step forward with technical contributions from Memento Blockchain and Interop Labs.
This initiative, part of the Monetary Authority of Singapore’s (MAS) Project Guardian, aims to advance operating models for digital asset management, fund distribution, and servicing through blockchain technology.
Memento Blockchain has developed a fully operational testnet for its public-permissioned blockchain, Memento ZKchain.
The testnet is built on the ZKsync Stack, with support from Matter Labs, and achieves cross-chain interoperability through the Axelar network, facilitated by Interop Labs.
Memento ZKchain incorporates zero-knowledge technology, enhancing security and efficiency.
Key features of Memento ZKchain include a digital identity system using soulbound tokens for KYC, AML, sanctions checks, and investor suitability tests, a Paymaster function for streamlined gas fee management with a clear audit trail using traditional payment rails, a custom-built block explorer for transaction confidentiality and full regulatory oversight, and the Domani Protocol dApp for issuing tokenized funds.
These innovations enable modular smart contracts for secure asset servicing with fiduciary control and seamless fund distribution across multiple blockchain networks.
Interop Labs has played a crucial role in enabling full cross-chain connectivity through the Axelar network, linking Memento ZKchain’s testnet with Avalanche Fuji and Stellar.
This capability supports integration with over 69 blockchain networks, broadening accessibility, secure scalability, and customization for financial applications.
The project team is testing several use cases, including the issuance and distribution of tokenized funds across single or multiple blockchains, interoperability for digital asset and digital cash movements, and near-instant settlement finality for enhanced asset safety and operational efficiency.
These advancements aim to enhance security, operational efficiency, and flexibility for fund managers and investors.
As Project DAMA 2 progresses, discussions are underway for the transition to mainnet deployment.
The team is also engaging in discussions on standardisation and integration with other initiatives like MAS’ Global Layer 1.
The team invites feedback from the financial sector to support integration and standardisation efforts.
Updates will be presented at the Singapore Fintech Festival 2024, with live demonstrations showcasing the practical applications of the project.
A comprehensive report is planned for release in 2025 to engage the industry and pave the way for future implementations.
Featured image credit: Wikipedia
