Deutsche Bank eyes stablecoin launch as tokenization wave hits European banking

Deutsche Bank is making a bold push into the digital assets space, signaling a potential game-changer for European finance. The banking giant is actively exploring stablecoins and tokenized deposits, with fresh momentum behind blockchain-based payment innovation.

In a recent interview with Bloomberg, Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation, revealed that the bank is weighing whether to issue its own stablecoin or join a wider industry initiative.

This move places Deutsche Bank’s at the forefront of financial institutions embracing Web3-native settlement infrastructure.

Deutsche Bank eyes stablecoin issuance

Deutsche Bank is now one of the largest global lenders considering its own stablecoin offering. While the idea is still under review, the bank may either develop an in-house euro-backed stablecoin or collaborate with others through a banking consortium.

“We can certainly see the momentum of stablecoins along with a regulatory supportive environment, especially in the US,” Behzad said.

“Banks have a wide variety of options available — everything from acting as a reserve manager to issuing their own stablecoin.”

This aligns with Deutsche Bank’s ongoing efforts to modernize payments through tokenized financial infrastructure.

In addition to stablecoins, Deutsche Bank is evaluating tokenized deposits — blockchain-based representations of traditional bank balances, which could revolutionize how settlements are processed.

Tokenized deposits are emerging as a secure, programmable payment tool that banks can issue themselves, allowing real-time transfer and clearing while maintaining regulatory compliance.

Deutsche Bank’s exploration of this technology reflects its intent to offer faster, cheaper, and more transparent financial services.

Regulatory clarity fuels bank-led innovation

The timing of Deutsche Bank’s announcement coincides with increasing regulatory clarity in both the EU and US, where policymakers are advancing stablecoin frameworks.

With the EU’s Markets in Crypto-Assets (MiCA) regulation in place and U.S. stablecoin legislation progressing in Congress, banks like Deutsche now feel emboldened to move forward with digital currency experiments.

Other European banks are following suit. Banco Santander, for example, is developing its own stablecoin, and ING CEO Steven van Rijswijk recently commented on the potential for a European settlement-focused stablecoin.

Deutsche has quietly laid the foundation for a deeper role in digital finance. In 2023, it invested in Partior, a blockchain-based cross-border payment network, and partnered with Swiss crypto custody firm Taurus to provide digital asset services to institutions.

Its asset management arm, DWS Group, has teamed up with Flow Traders and Galaxy Digital to launch a euro-denominated token—a move that further demonstrates Deutsche Bank’s growing comfort with digital assets.

Additionally, the bank is participating in Project Agorá, a multi-national central banking initiative spearheaded by the Bank for International Settlements to study how tokenization could reshape cross-border payments at scale.

Stablecoin market poised for explosive growth

As Deutsche Bank’s positions itself in the digital currency space, market forecasts show huge upside potential.

According to Citigroup, the global stablecoin market could surge from $240 billion today to over $2 trillion by 2030, driven by regulatory clarity and institutional adoption.

“Deutsche Bank’s interest in stablecoins isn’t just exploratory—it’s strategic,” said Sheila Warren, CEO of the Crypto Council for Innovation.

“The lines between traditional and decentralized finance are beginning to blur, and banks like Deutsche are seizing the moment.”

The steady rise of blockchain infrastructure in banking is no longer a theoretical trend. With its calculated foray into stablecoins, tokenized deposits, and digital custody, Deutsche Bank is signaling a long-term commitment to transforming how global money moves.

As more banks embrace tokenization, Deutsche Bank may soon play a pivotal role in the real-world adoption of programmable finance, bridging legacy systems with a blockchain-powered future.