Moody's Talks - Focus on Finance Traditional Banks Gear Up for Digital Future
Apr 9, 2025
In this engaging discussion, Sabih Behzad, the Head of Digital Assets and Currencies Transformation at Deutsche Bank, shares insights on the integration of blockchain technology in traditional banking. He highlights the challenges of interoperability with legacy systems and the importance of user experience. The conversation also tackles the complexities of tokenized securities, the need for strong custodial solutions, and the evolving global regulatory landscape for digital assets. Additionally, Sabih addresses the rising cyber risks and the security measures banks are implementing to protect digital assets.
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Smart Blockchain Integration
- Integrate blockchain with legacy systems at the optimal downstream point to avoid fragmented efforts.
- Use existing client channels and APIs for seamless user experience and minimal disruption.
Deutsche Bank's Tokenized Bond Example
- Deutsche Bank issued a tokenized bond for KFW, gaining valuable insight from this experience.
- They are working towards industrializing the capability to tokenize securities.
Secondary Markets Key for Tokenization
- Secondary markets are crucial for tokenized securities to have real value beyond technology showcase.
- More issuance with enhanced features, like programmability, and clear capital treatment are needed for liquidity.