German lender Deutsche Bank (DB) says it is considering launching its own stablecoin and allowing tokenized deposits as part of a growing digital assets strategy.
Like many other global banks, Deutsche Bank is exploring blockchain technology for use in payments and settlements.
Media reports say that the Frankfurt-based bank is considering whether to issue its own stablecoin or join a broader industry initiative.
The lender is also reportedly considering the development of a tokenized deposit system aimed at making financial payments more efficient.
Other major banks, particularly in the U.S., are also weighing stablecoins as they look to fend off rising competition from the cryptocurrency space.
JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) are each growing and developing their digital asset offerings amid increased competition and demands from clients.
Stablecoins, which are cryptocurrencies whose price is tied to another asset, typically the U.S. dollar or price of gold, are proving particularly attractive to financial institutions.
Stablecoins are less volatile than other crypto, and stablecoin legislation in the U.S. and Europe has helped accelerate the adoption of stablecoins such as Tether's USDT and Circle's USDC.
Deutsche Bank is said to be debating internally whether to act as reserve managers for stablecoins or launch their own digital tokens.
Deutsche Bank recently said in a research note to clients that stablecoins are on the verge of mainstream adoption as crypto legislation advances within governments worldwide.
Currently, Deutsche Bank is Germany’s largest lender. Its stock has risen 64% this year to trade at $28.13 U.S. per share in New York.
