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Deutsche Bank (DB) Considers Launching Its Own Stablecoin

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Deutsche Bank, Germany’s largest bank, is considering launching its own stablecoin and creating a tokenized deposit solution to improve payment systems.

Deutsche Bank (DB) Considers Launching Its Own Stablecoin

Deutsche Bank (DB), Germany’s largest bank, is considering launching its own stablecoin and creating a tokenized deposit solution to improve payment systems, according to a Bloomberg report that was published on Friday. The move comes as stablecoins continue to gain momentum in the financial world. In fact, Europe already has a clear regulatory framework through its MiCa law, and U.S. lawmakers may pass new stablecoin legislation as early as next week.

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“We are seeing growing momentum for stablecoins, especially with a supportive regulatory environment in the U.S.,” said Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation, in an interview with Bloomberg. He added that banks have many ways to get involved with stablecoins, ranging from serving as reserve managers to issuing their own coins, either independently or in partnerships with other banks.

For context, stablecoins are a type of cryptocurrency that aims to maintain a stable value by being pegged to real-world assets, such as the U.S. dollar or gold. Tokenized deposits, meanwhile, are regular bank deposits that are recorded on a blockchain, which allows them to move faster in digital transactions. Deutsche Bank’s interest in both tools highlights the growing interest from traditional banks in using blockchain technology to modernize payments.

Is DB Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on DB stock based on nine Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DB price target of $29.27 per share implies 4% upside potential.

See more DB analyst ratings

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