According to a report On February 21, Deutsche Bank Singapore and Memento Blockchain successfully completed the proof-of-concept phase of Project DAMA (Digital Asset Management Access), designed to facilitate the management of digital funds that invest in tokenized securities. According to their report, asset managers were able to create a digital asset pool with their own soul-linked token and launch a fiat-to-digital on-ramp for users. Institutional investors could then subscribe to the fund through direct token minting, through a decentralized exchange aggregator, or through an integrated marketplace.
As a first step, Deutsche Bank and the Memento Blockchain created a decentralized finance (DeFi) platform on Ethereum (ETH) and a unique, non-transferable Soulbound token. Using the SBT, the platform's developers could then verify the identity of the wallet owner and grant them access to investment opportunities without requiring their personal information each time. Meanwhile, a trust anchor keeps know-your-customer (KYC) controls and attached documents off-chain. The SBT could also be used to restrict access to services or products that do not match the risk tolerance or experience of the underlying users.
To invest in a fund, institutional investors holding the SBT would provide collateral to mint and receive tokenized shares of the underlying digital investment fund of their choice. The tokenized shares can then be traded through a built-in digital marketplace for digital assets like stablecoins. As for asset managers, they can create tokenized funds using a window on Ethereum testnets involving a variety of strategies, such as DeFi staking.
For asset security, Deutsche Bank and Memento Blockchain used MetaMask for the DAMA Project. MetaMask is integrated into the platform as the digital wallet of choice for partners to facilitate the transfer of digital assets. Institutional investors would need to have SBT on their MetaMask and KYC to access the decentralized applications of the platform. For next steps, Deutsche Bank says it is exploring the use of the DAMA Project in Singapore, where there are currently 1,100 registered fund managers with a combined $3.36 trillion in assets under management.
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