Golden Finance reports that Deutsche Bank is working to address regulatory challenges faced by financial institutions when using public chains, such as the risk of inadvertently transacting with criminals or sanctioned entities. The bank unveiled a beta version of its asset servicing pilot project Dama 2 in November. The platform includes a so-called “Layer 2,” a tool that leverages public chains while offering cheaper and more efficient transactions. Deutsche Bank’s Layer 2 is plugged into Ethereum, the busiest business channel in the cryptocurrency space, Boon-Hiong Chan, the bank’s head of industry application innovation in Asia Pacific, said in an interview. Boon-Hiong Chan said that for regulated lending institutions, public chains such as Ethereum are full of risks. These include not knowing “who exactly is validating transactions,” whether transaction fees will be paid to sanctioned entities, and the threat of unforeseen hard forks that could revolutionize the digital ledger. "With dual-chain, these regulatory concerns should be addressed," Chan said.