# Manage tokenized funds across blockchain networks

> Deutsche Bank, Memento Blockchain, and Interop Labs deployed an interoperable infrastructure to manage tokenized funds across blockchain networks within the DAMA 2 project. The initiative expanded upon a previous feasibility study, delivering a permissioned public testnet architecture followed by a mainnet rollout in May 2025. This institutional framework streamlines the issuance, distribution, and servicing of digital fund shares while strictly preserving regulatory compliance.

**Sector:** Tertiary sector · **Industry:** Asset management · **Organisation:** Deutsche Bank, Memento Blockchain, Interop Labs · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/deutsche-bank-tokenisierte-fonds-netzwerkuebergreifend-verwalten

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

Deutsche Bank, Memento Blockchain, and Interop Labs demonstrated an institutional procedure in the DAMA 2 project that enables tokenised funds to be managed across heterogeneous blockchain networks. Traditional fund structures are often tied to separate custody systems, which slows down and increases the cost of cross-border or cross-platform investments. By using interoperable Smart Contracts and zero-knowledge technology, secure, automated management is enabled while simultaneously meeting existing regulatory requirements of institutional financial markets.

The project built on the findings of the original feasibility study Project DAMA and developed a practical architecture for asset management. At its core is the Memento ZKchain, a permissioned Layer-2 infrastructure based on Ethereum that combines scalability with institutional data privacy. Interop Labs contributed essential components to securely transfer transactions and information flows between different network environments. After deploying a fully functional testnet architecture, the Mainnet deployment took place in May 2025, as documented in the official litepaper. The initiative demonstrates how the issuance, servicing, and transfer of tokenised fund shares can be technically standardised and operated compliantly, even though a full commercial mass operation is not yet active.

## Benefits

- Reduced reconciliation and administrative effort between custodians and fund managers
- Standardised interfaces for cross-network issuance of digital fund shares
- More efficient transaction processing through interoperable Smart Contracts
- Compliance with strict regulatory and data protection requirements using zero-knowledge proofs
- Reduced fragmentation of assets across different blockchain ecosystems
- Relief from error-prone manual inventory reconciliations
- Focus on technology-supported control and compliance activities

## Challenges

- Required integration into heterogeneous IT and core banking systems of the involved partners
- Different legal requirements for the custody of digital assets
- High technical complexity in securing cross-network protocols
- Need for regulatory harmonisation across different jurisdictions
- Requirement for specialised expertise in Layer-2 architectures and Smart Contract security

## Technology foundation

The architecture is based on the Memento ZKchain, an Ethereum Layer-2 structure with zero-knowledge technology, combined with interoperability protocols for cross-chain transactions. This approach enables compliance with strict data protection requirements and regulatory obligations while ensuring efficient scaling.

## Sources

- [Simplifying digital fund management and investment servicing](https://corporates.db.com/publications/White-papers-guides/simplifying-digital-fund-management-and-investment-servicing)
- [DAMA 2 litepaper – institutional blueprint for asset tokenisation and servicing](https://www.db.com/news/detail/20250618-dama-2-litepaper-institutional-blueprint-for-asset-tokenisation-and-servicing-on-ethereum-layer-2)
- [DAMA 2 Lite Paper](https://cdn.mementoblockchain.com/dama2/pdfs/DAMA-2-Lite-Paper_Jun172025.pdf)