Ethereum Layer 2 Blueprint for Digital Asset Tokenization and Management: DAMA's Institutional Guide
**Next-Generation Tokenization Platform Simplifies Digital Asset Adoption**
The DAMA 2 project, a collaborative effort between Deutsche Bank, Memento Blockchain, and Axelar Network, is set to revolutionize the digital asset management landscape. This next-generation institutional tokenization platform aims to make it easier for asset and wealth managers, token issuers, and investment advisors to create and service tokenised assets.
DAMA 2 is designed with a layered architecture that includes Ethereum Layer 1 as the settlement base, Memento Blockchain's ZKsync-based Layer 2 for transaction processing with zero-knowledge proofs, and a top-layer interface acting as an app store for pre-built smart contract templates. This setup offers a Blockchain-as-a-Service model, enabling issuers to launch products quickly without building their own protocol infrastructure.
One of the key features of DAMA 2 is its focus on interoperability across blockchains, achieved through the integration of Axelar Network's Interchain Token Service. This integration allows users to lock, mint, and burn tokens across multiple networks through a unified dashboard, addressing the challenge of siloed liquidity and vendor sprawl.
Privacy and regulatory alignment are also priorities for DAMA 2. Leveraging zero-knowledge proofs, the platform ensures privacy and confidentiality in transactions while adhering to regulatory requirements, facilitating the institutional issuance and servicing of digital funds and stablecoins.
Boon-Hiong Chan, Innovation Lead, Securities & Technology Advocacy at Memento Blockchain, stated that DAMA 2 represents the evolution of public chains for institutional finance and how leading applied technologies can meet operational resilience and regulatory goals via one platform.
The platform is also focused on eliminating long learning curves and complexity for digital fund management, encouraging broader adoption by simplifying workflows and maintaining compliance without sacrificing usability.
The DAMA 2 minimum viable product (MVP) mainnet launch is targeted for the second half of 2025. This next-generation tokenization platform is poised to address current challenges in blockchain adoption, such as regulatory barriers, usability, vendor sprawl, and liquidity silos, and bring tokenisation out of the sandbox and into production.
For more detailed information about the DAMA 2 project, readers can refer to the litepaper published by Memento Blockchain and Axelar Network developer Interop Labs. The litepaper suggests that DAMA 2 arrives at a critical moment, as global wealth is shifting towards digital-native generations, five times more likely to hold crypto or digital assets than baby boomers.
Asset management and finance professionals, along with token issuers and investment advisors, can leverage DAMA 2's technology to create and service tokenized assets more efficiently, as it simplifies workflows while maintaining compliance. This next-generation tokenization platform, designed for the digital asset management landscape, aims to address current challenges such as vendor sprawl, liquidity silos, regulatory barriers, and usability issues.
