Deutsche Bank Joins Stablecoin and Tokenization Race
Deutsche Bank is expanding its digital asset strategy by examining the potential of stablecoins and tokenized deposits for payment and settlement innovation. According to a Bloomberg report citing Sabih Behzad, the bank’s head of digital assets and currencies transformation, Germany’s largest lender is evaluating whether to issue its own stablecoin or join a wider industry initiative.
As part of this strategy, the bank is also exploring the development of a tokenized deposit infrastructure, aimed at increasing efficiency in cross-border and domestic payment systems.
Global Banks Eye Blockchain-Powered Stablecoins
Deutsche Bank is not alone in this move. Several major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are reportedly in discussions to create a joint stablecoin in response to growing competition from decentralized finance and crypto-native payment platforms.
Behzad stated that banks now have multiple avenues to participate in the digital token space — whether by acting as custodians, reserve managers, or by issuing their own tokens. He noted, “Regulatory clarity is giving institutions confidence to explore these innovations.”
Supportive Regulation Fuels Adoption
The European Union’s MiCA framework and pending legislation in the U.S. are helping accelerate institutional adoption of stablecoins. Deutsche Bank previously noted in a research report that stablecoins are “on the brink of mainstream adoption” as regulatory efforts advance under the Trump administration.
In addition, the bank has already invested in blockchain-powered payments platform Partior and has joined Project Agorá, a central bank-backed initiative focused on wholesale tokenized money systems.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
[…] The global stablecoin market exceeded $280 billion, according to a November 2025 analysis from the European Central Bank. With a market value of $184 billion, Tether dominated the market, followed by USD Coin with $75 […]