According to Coinstruct's latest research, nearly 75% of tokenization projects at major US banks are operating on private or permissioned blockchains. This preference highlights a clear trend among financial giants who prioritize control and privacy for tokenized deposits, payments, and settlements.
Yet, not all tokenized products follow this path. Investment products linked to real-world assets (RWAs), which have recently surpassed $37 billion in market size, are increasingly launching on public blockchains. This divergence points to a hybrid approach emerging in Wall Street’s blockchain strategy.
Private vs. Public Blockchains: Different Roles for Different Uses
Major financial institutions like BlackRock, Franklin Templeton, and JPMorgan are experimenting with blockchain initiatives that blend private and public models. BlackRock’s BUIDL platform and Franklin Templeton’s BENJI project both illustrate this shift toward combining permissioned infrastructures with public networks to balance security and accessibility.
Private blockchains provide banks with controlled environments that meet regulatory demands and protect sensitive data, making them ideal for internal tokenization of deposits and settlements. Conversely, public blockchains offer greater liquidity and openness, suiting tokenized investment products that benefit from broader market participation.
This balanced strategy aligns with broader market observations. While private chains handle most bank-specific tokenization, the fastest growth comes from public-chain-based offerings. Thus, Wall Street is not choosing one blockchain model at the expense of the other but rather integrating both into a multi-layered framework.
material is informational and not financial advice
