Banks Weigh Public and Private Blockchains in Infrastructure Decision With Long-Term Stakes

Asset tokenization is moving from experimentation toward becoming financial infrastructure, with Deutsche Bank research estimating the market for tokenized real-world assets at about $33 billion. Private blockchains give banks greater control over identity verification, privacy and governance, while public blockchains offer interoperability across institutions and reduce the risks of relying on decentralized operations. The choice of underlying infrastructure could create long-term dependencies that are difficult to reverse.

Stellar Development Foundation CEO Denelle Dixon warned on February 27, 2026, that closed systems could lead to vendor lock-in. The latest report on March 24 showed that institutions including JPMorgan Chase and Invesco are no longer choosing exclusively between the two models. Instead, they are using both public blockchains such as Solana and permissioned Ethereum Layer 2 networks.