Institutional giants aren't waiting for a "one-chain-to-rule-them-all" scenario. Instead, they are building a bifurcated infrastructure, using public networks like Ethereum for market-facing liquidity and permissioned rails like Canton for private, internal settlement processes.
The "Two-Rail" Reality
According to Marcin Kaźmierczak, co-founder of oracle provider RedStone, the industry is moving toward a parallel architecture. Banks aren't choosing between public and private; they are utilizing both to solve different problems.
- Public Rails (e.g., Ethereum): Used for distribution, composability, and tapping into the deep liquidity of DeFi. With over $15 billion in RWA tokens currently hosted on Ethereum, it remains the primary venue for assets that need to be traded or collateralized in open markets.
- Permissioned Rails (e.g., Canton Network): Used for internal workflows, bilateral settlements, and operations that demand strict confidentiality. These networks allow firms to automate processes while keeping sensitive trade data restricted to authorized counterparties.
Why the Split Matters for Liquidity
Institutional RWA adoption is no longer a speculative narrative; it’s a capital allocation reality. McKinsey projects tokenized assets could hit $2 trillion by 2030, while more aggressive estimates from Standard Chartered suggest a staggering $30.1 trillion by 2034.
For these numbers to materialize, institutions need a "settlement layer" that doesn't compromise their privacy requirements. The Canton Network, which claims to have processed $6 trillion in RWA value in 2025, provides a model where transaction details remain opaque to the public, mimicking the traditional "black box" of legacy finance.
The Privacy Debate: ZK-Proofs vs. Permissioned Data
Not everyone is sold on the permissioned approach. A growing rift exists between proponents of permissioned data sharing and those pushing for Zero-Knowledge (ZK) proofs.
Matter Labs CEO Alex Gluchowski argues that ZK systems offer superior security by requiring cryptographic proof for every state transition. Conversely, Digital Asset’s Yuval Rooz has voiced concerns that fully opaque ZK systems could create "black box" environments, making it difficult for regulators to audit for fraud—a major concern for firms still traumatized by the lack of transparency in past corporate scandals.
Institutional RWA Landscape at a Glance
| Feature | Public (e.g., Ethereum) | Permissioned (e.g., Canton) |
|---|---|---|
| Primary Use | Liquidity & DeFi |