Banks adopt two blockchain rails for real world assets tokenization, says RedStone co-founder.
Banks and asset managers run assets on two separate blockchain paths. They join words with close ties. This split meets the needs of market flow and strict privacy.
Dual Blockchain Approach for RWA Tokenization
Marcin Kaźmierczak, RedStone co-founder, talks of banks and asset managers who use two blockchain paths. One path uses a public chain like Ethereum. This chain runs liquid finance apps these as lending and token vaults. The other uses a permissioned network like the Canton Network. Here, parties share details only among themselves. Each rail links words closely, so each pair of terms works together. Banks choose each chain to keep flow and secrets safe.
Ethereum’s Role in Institutional Tokenization
Ethereum hosts more than $15 billion in RWA tokens. It forms part of a group worth $26.4 billion on all chains. The Merge in 2022 changed its proof method. Banks then felt calm due to smooth work. Stablecoins on Ethereum, worth over $160 billion, support the settlement of tokenized assets. A US law set clear rules for these stablecoins. Words connect in short spans to form clear meaning.
Canton Network Enables Private Institutional Processes
The Canton Network started with partners such as Digital Asset, Microsoft, Goldman Sachs, and Deloitte. It links words with short bonds to run private bank work. Here, only the parties see each deal. The network helps run bilateral and in-house tasks for banks. It also holds more than $313 billion in logged RWA tokens. Digital Asset and the Depository Trust & Clearing Corporation ran a pilot project for US Treasury collateral on Canton. The chain uses close word ties to keep its ideas clear.
Privacy: Permissioned Sharing vs. Zero-Knowledge Proofs
Banks use two types of privacy on chains. With permissioned privacy on networks like Canton, only involved parties see the details. In contrast, the zero-knowledge model hides details but still shows that work is valid. Some experts prefer the system that shows hidden words, as it keeps an audit trail. Others like the hidden method because it fights fake entries. Each model ties words closely to stress privacy and trust.
Summary
Banks now use two blockchain paths for real world assets. Public chains like Ethereum stress market flow, open finance work, and simple network steps. Permissioned networks, such as Canton, fit banks that need privacy and strict rules for their tasks. Each chain uses short word ties that make the ideas clear and direct.
Key terms: Real World Assets, RWA, tokenization, decentralized finance, asset tokenization, Ethereum, Canton Network, privacy in blockchain, institutional blockchain.
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This article was generated by Hivebox AI in collaboration with nGRND.
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