Deutsche Bank and Memento Blockchain complete the DAMA project

by Arthur · February 21, 2023

Deutsche Bank and Memento Blockchain have successfully completed a proof of concept – known as Project DAMA (Digital Assets Management Access) – which can provide a more efficient, secure and flexible solution for digital fund management and investment services.

Awarded a Monetary Authority of Singapore (MAS) Financial Sector Technology Innovation (FSTI) Proof of Concept (POC) grant on August 5, 2022, Project DAMA, a collaboration between Deutsche Bank and Memento Blockchain, seeks to tackle the myriad challenges associated with launch or access to digital funds including high costs and time-consuming processes.

The solution provides asset managers and their existing transfer agents, fund administrators and custodians with a bolt-on, one-stop digital fund investment service platform that significantly reduces the effort required to launch and manage digital funds. At the same time, Project DAMA aims to be an open architecture platform that can facilitate investor access to different funds from different asset managers, as well as accommodate different custody models.

“Digital asset management and digital funds are the natural next steps after asset tokenization. Through Project DAMA, we have been able to demonstrate the viability of transitioning to the future of digital finance through several innovative asset management and investment service capabilities, including digital identity, mass customization and decentralized applications,” said Anand Rengarajan, Global Head of Sales at Deutsche Bank . & Head of Asia Pacific, Securities Services. “The expansion of traditional fund services with digital capabilities can significantly reduce cost-related barriers to entry for asset managers looking to launch a digital fund – and for qualified investors seeking exposure to such funds. We look forward to the opportunities of the future.”

Key features of the project included the creation of a unique and non-transferable token, modeled after the Soulbound Token (SBT), to represent the digital identity and profile of a wallet owner. This technology can help asset managers comply with relevant regulations and ensure that only fit-tested investors, qualified or legal entities are able to invest in digital funds.

Project DAMA also tested a decentralized payment and asset exchange gateway for investors to convert fiat money into a digital currency or assets, as well as smart contracts tailored to the specific fund profile to simplify valuation and accounting. Smart contract structures were also implemented that can dynamically offer choices according to investors’ preferences.

“The partnership on this POC was a perfect mix: we provided the technical and implementation expertise, Deutsche Bank shared the functional requirements, and we both collaborated together on the platform’s design,” said Nicola Lanteri, CEO, Memento Blockchain. “The result is an innovative and practical infrastructure that combines core components of transfer agency, fund administration, custody and payments for the digital fund environment, while enabling an open architecture that enables self-custodianship of assets.”

To learn more about Project DAMA, read the report here.

Source: Deutsche Bank