Deutsche Bank Singapore and Memento Blockchain have successfully completed the proof-of-concept phase for Project DAMA, a novel digital asset management access system for transacting tokenized securities. The platform enables asset managers to create a digital asset fund with a unique soulbound token (SBT), allowing them to launch a direct fiat-to-digital on-ramp for users. Institutional investors can then subscribe to the fund through direct token minting or through a decentralized exchange aggregator or built-in marketplace.
The platform was built on Ethereum and uses the SBT to verify the identity of the wallet owner, granting them access to investment opportunities without requiring personal information each time. KYC checks and documents are kept off-chain by a trust anchor. The SBT also enables access restriction to products or services that do not match the users’ risk tolerance or experience.
Institutional investors holding the SBT can invest in a fund by providing collateral, allowing them to mint and receive tokenized shares of the underlying digital investment fund. These tokenized shares can then be swapped on a built-in digital marketplace for digital assets, such as stablecoins. Asset managers can also create tokenized funds using one-window on Ethereum testnets, utilizing a variety of strategies, including DeFi staking.
To ensure asset security, Deutsche Bank and Memento Blockchain opted to use MetaMask as the digital wallet of choice for facilitating the transfer of digital assets in Project DAMA. The platform integrates MetaMask, and institutional investors must hold both an SBT in their MetaMask wallet and KYC to access the decentralized applications.
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Deutsche Bank is now considering the use of Project DAMA in Singapore, where there are over 1,100 registered fund managers with a combined total of $3.36 trillion in assets under management.
