Hi,
Yes, as long as your DAM assets are structured in a way that follows the recommended structure for translations, the translations framework should work as expected. This means that your assets should be structured with a language-specific subfolder under /content/dam, such as /content/dam/en, /content/dam/fr, etc.
For your specific case where you have a multi-tenant environment, you can still use the recommended structure by adding a language-specific subfolder under each of your tenant-specific DAM folders. This means that you would have /content/dam/my-site/content-fragments/en, /content/dam/my-site/content-fragments/fr, etc. and /content/dam/my-site-2/content-fragments/en, /content/dam/my-site-2/content-fragments/fr, etc.
As long as your translations are configured correctly and you are using the correct language codes when referencing your assets, the translations framework should be able to handle translations across all of your tenant-specific DAM folders.