Deutsche Bank Explores Stablecoin Strategy Amid Growing Institutional Crypto Adoption

Deutsche Bank is actively evaluating stablecoins and tokenized deposits as part of its expanding digital assets strategy. The German lender is weighing whether to issue its own stablecoin or join an industry consortium, according to Sabih Behzad, head of digital assets and currencies transformation. This MOVE aligns with broader banking sector efforts to leverage blockchain for payments and settlements.

The bank's deliberations come as U.S. financial giants including JPMorgan, Bank of America, and Citigroup consider launching a joint stablecoin initiative. Regulatory progress in both the EU and U.S. has created favorable conditions for institutional stablecoin adoption, with Deutsche Bank noting these instruments are nearing mainstream acceptance.

Beyond stablecoins, Deutsche Bank is exploring tokenized deposit systems to enhance payment efficiency. The institution has already made strategic moves in the space through investments in cross-border payments firm Partior and participation in Project Agorá, a wholesale tokenized payments initiative backed by central banks.