#public blockchains

➤ JPMorgan analysts suggest that blockchain adoption bypassing public networks poses a greater risk to Bitcoin than specific monetization programs. ➤ Institutions favor permissioned blockchains due to regulatory certainty and control, potentially marginalizing public chains like Ethereum. ➤ The development of tokenized deposits and CBDCs by banks and central banks offers regulated alternatives, impacting the role of public blockchains in future financial infrastructure.

➤ The Bank for International Settlements (BIS) has issued a strong warning regarding stablecoins, citing risks to global monetary control and fragmentation of the financial system. ➤ BIS argues that public blockchains lack the necessary institutional safety, scalability, and accountability for systemic financial infrastructure, proposing tokenized central bank and commercial bank money as a more robust alternative. ➤ The report advocates for a regulated 'unified ledger' architecture that leverages tokenization's benefits while preserving monetary stability and public trust, particularly highlighting concerns for emerging market economies.

➤ Tokenized equities are predicted to grow on secure, permissioned blockchains rather than public ones, according to Anndy Lian. ➤ Lian emphasizes that these private networks are better suited for institutional needs and regulatory compliance. ➤ This focus on institutional trends in digital finance contrasts with recent market movements in Bitcoin and Elon Musk's net worth.

➤ The article predicts a significant surge in network demand on public blockchains due to the integration of autonomous AI agents, potentially increasing transaction volume by over 100x. ➤ Key technological advancements like CuEVM (Nvidia's CUDA on EVM), Clear Signing, and ZK-ACE are highlighted as crucial for handling this increased demand, improving simulation speeds, transaction clarity, and agent authorization. ➤ This surge in network demand is expected to lead to higher prices for native blockchain tokens and a significant repricing event in the digital asset market, with trillions of dollars in real-world assets potentially moving on-chain.

➤ The DTCC is integrating with the Stellar public blockchain to host tokenized assets, signaling a move towards regulated financial infrastructure. ➤ This development is seen as a significant step for tokenized finance, moving beyond crypto-native concepts to established market infrastructure. ➤ While Bitcoin experiences a downturn, Stellar (XLM) has seen a significant rally following the DTCC announcement, highlighting the growing interest in tokenized RWAs.

➤ The article discusses the historical trend of institutions favoring permissioned 'blockchain, not Bitcoin' solutions, which ultimately failed, with Bitcoin and public blockchains emerging victorious. ➤ It highlights the current push for tokenization of real-world assets, particularly equities, and the SEC's recent delay of an innovation exemption due to pushback from traditional stock exchanges. ➤ The author argues that despite initial resistance and a preference for 'walled gardens,' the network effects of public, permissionless protocols and the functionality of Issuer-Sponsored Tokens (ISTs) will inevitably lead to the widespread adoption of tokenized equities on-chain.

➤ The article discusses the impending congestion on public blockchains due to the rise of AI agents, which will significantly increase transaction volume. ➤ It highlights key technological advancements like CuEVM, Clear Signing, and ZK-ACE that are being developed to handle this increased demand and improve security and efficiency. ➤ The author predicts that this surge in network demand will lead to higher native token prices and a substantial repricing event for digital assets, bringing trillions of dollars of real-world assets on-chain.

➤ Dfns and Zama have partnered to integrate Fully Homomorphic Encryption (FHE) into Dfns' wallet infrastructure, enabling confidential transactions on public blockchains. ➤ This collaboration allows institutions to manage sensitive capital on-chain without compromising confidentiality or compliance, starting with Ethereum and EVM-compatible chains. ➤ The integration introduces the ERC-7984 confidential token standard, facilitating encrypted settlements and regulated data control for institutional clients.