The Public Blockchain Debate is Already Obsolete for Banks
By PYMNTS
AI summary of the source article
Rather than fully migrating to public blockchains or staying restricted to isolated private networks, banks are converging on an architecture that shares transaction state while strictly permissioning activity. Regulated institutions prioritize synchronization, privacy, and identity controls over transparent, decentralized governance. Recent deployments highlight this shift: Fiserv launched digital asset infrastructure with the Bank of North Dakota, Swift engaged major global banks including HSBC and Standard Chartered in tokenized-deposit pilots, and JPMorgan deployed its JPMD deposit token on Base with permissioned access. Meanwhile, IBM enables institutions to integrate with Swift's ledger using standard ISO 20022 messaging.
Why it matters
The shift toward hybrid, permissioned ledgers enables banks to capture blockchain's reconciliation and liquidity benefits without violating privacy, sanctions, and regulatory mandates. This approach paves the practical path for enterprise-scale tokenization across global banking infrastructure.
Key facts
- Swift announced its blockchain-based ledger for tokenized-deposit pilots with 17 banks, seeing live transactions from lenders including HSBC, Standard Chartered, UOB, DBS, and OCBC.
- JPMorgan made its USD deposit token, JPMD, available on public Ethereum Layer 2 Base, combining a public chain with permissioned bank liability access.
- Bank of North Dakota used Fiserv's newly launched digital asset platform to deploy its Roughrider stablecoin token.