Deutsche Bank Explores Stablecoin Integration Amid U.S. Regulatory Developments

Deutsche Bank is actively exploring the integration of stablecoins and tokenized deposits into its payment infrastructure. The Germany-based investment bank is considering multiple avenues, including issuing its own stablecoin or joining an industry consortium. This strategic shift aligns with the growing $150 billion stablecoin market and comes as U.S. lawmakers debate the Genius Act, a bipartisan bill aimed at regulating stablecoins and fostering digital asset innovation.

Sabih Behzad, Deutsche Bank’s head of digital assets, highlighted the momentum behind stablecoins and the supportive regulatory environment, particularly in the U.S. "Banks have a wide variety of options available to engage in the stablecoin industry—everything from acting as a reserve manager to issuing their own stablecoin, either alone or in a consortium," Behzad said. The MOVE is further validated by a 2023 Bank for International Settlements study, which found that tokenized assets could reduce cross-border payment costs by up to 30% using blockchain technology.