Banks Embrace Dual Blockchain Strategies for RWAs
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In the evolving landscape of blockchain technology, banks are poised to utilize two distinct infrastructures for managing real-world assets (RWAs). Marcin Kaźmierczak, co-founder of RedStone, noted that financial institutions are bifurcating their operations between private networks like Canton and public platforms such as Ethereum.
The trend reflects a growing acknowledgment of the advantages these differentiated systems provide. On one side, Ethereum offers liquidity and accessibility to decentralized finance (DeFi), while, on the other, Canton fulfills the need for confidentiality in institutional transactions.
As tokenized assets gain traction, this division becomes increasingly significant. Kaźmierczak remarked that while product development is predominantly taking place on public blockchains, permissioned networks, like Canton, are well-suited for confidential institutional operations.
He highlighted that certain institutional dealings must remain private, a core strength that Canton effectively delivers. Notably, Canton Network has claimed to process an impressive $6 trillion in RWA transactions in 2025.
Rather than opting for a singular blockchain solution, banks are constructing parallel systems tailored to their specific requirements, according to Kaźmierczak. This approach allows them to leverage the strengths of both public and permissioned blockchains.
The landscape for tokenization has evolved rapidly, with estimates indicating that the value of tokenized assets might soar to $2 trillion by 2030, and even reach up to $30.1 trillion by 2034, according to various forecasts.
McKinsey’s analysis underscores that regulatory clarity in the United States, particularly following the enactment of the GENIUS Act in 2025, has catalyzed this transition. This legislation established a federal framework for stablecoins, which are crucial for facilitating many tokenized asset transactions.
Kaźmierczak noted that institutions’ confidence in Ethereum strengthened following its transition to a proof-of-stake model in 2022, alleviating earlier uncertainties about the network’s stability.
He explained that the burst of interest in RWA projects among institutions began in 2023 or 2024, but due to the nature of institutional budgets, the progression of these initiatives unfolds more gradually than in the cryptocurrency sector. Consequently, numerous institutions announced their tokenization efforts in December 2024.
A staggering $26.4 billion worth of RWA tokens currently utilize blockchain technology for distribution, with Ethereum accounting for a significant $15 billion. This positions Ethereum as a leader in liquidity, supported by over $160 billion in stablecoins circulating on the network.
The separation of operations into public and private chains reflects a strategic approach by institutions. Public blockchains are favored for their liquidity and access to DeFi opportunities, whereas permissioned networks are preferred for internal processes requiring confidentiality and secure transactions.
Platforms like Canton enable financial firms to automate these internal processes, ensuring transaction details remain accessible only to the relevant parties, mirroring traditional financial practices.
Institutions’ collaboration within the Canton framework has involved major players from the beginning. Initiatives launched in May 2023, spearheaded by Digital Asset alongside a consortium of firms including Microsoft and Goldman Sachs, exemplify the collective momentum behind this dual approach.
One notable distinction in this dual blockchain paradigm is how privacy is maintained. Many projects explore confidentiality through cryptographic methods, such as zero-knowledge proofs, while Canton adopts a model of permission-based data sharing, facilitating privacy for involved parties.
Some industry experts argue that zero-knowledge systems could augment blockchain security by necessitating cryptographic proof of adherence to protocols, minimizing the risk of unauthorized transactions.
This ongoing debate highlights the complexities facing financial institutions as they navigate the balance of privacy, accountability, and operational control. As they explore various strategies, the coexistence of public and permissioned blockchain infrastructures is likely to define the future of institutional adoption in the tokenized financial ecosystem.
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