Banks Will Run RWAs on Two Blockchain Rails, Says RedStone Co-Founder

Introduction

The tokenization of real-world assets (RWAs) is reshaping institutional finance, but adoption is not converging on a single blockchain model. Instead, major banks and asset managers are building parallel infrastructures: public blockchains like Ethereum for liquidity and composability, and permissioned networks for privacy and confidential operations. This dual-rail approach addresses the differing needs of market-facing products and internal institutional processes, according to Marcin Kaźmierczak, co-founder of blockchain oracle provider RedStone.

The Dual-Rail Strategy for Institutional RWAs

Product development and innovation for tokenized assets are increasingly occurring on public blockchains, where deep liquidity, DeFi integrations (such as lending protocols and tokenized vaults), and composability enable broader market access. Ethereum stands out as the dominant distribution layer, hosting over $15 billion in RWA tokens and more than $160 billion in stablecoins, supporting seamless on-chain trading and yield generation.In contrast, permissioned or private networks excel at handling sensitive institutional activities, including settlement, bilateral transactions, internal asset management, and processes requiring strict confidentiality. These systems ensure transaction details remain visible only to authorized participants, replicating traditional finance privacy while leveraging blockchain for efficiency.This split reflects a pragmatic evolution: institutions are not forcing convergence but are developing complementary rails tailored to specific functions within the tokenized ecosystem.

Canton Network as the Permissioned Rail

A prominent example of the private rail is the Canton Network, developed by Digital Asset and backed by major players including Goldman Sachs, Microsoft, Deloitte, Nasdaq, and others. Launched in May 2023, Canton processed $6 trillion in RWA value in 2025 and represents over $313 billion in tokenized assets, primarily as a recordkeeping and settlement layer rather than a public distribution platform.Notable pilots include a September 2024 collaboration with the Depository Trust & Clearing Corporation (DTCC) on the US Treasury Collateral Network. Canton's privacy features make it ideal for institutional-grade operations, though assets tokenized on it often lack portability to external wallets outside the platform.

Ethereum's Role in Public Liquidity and DeFi

Public chains like Ethereum have gained institutional confidence following the 2022 Merge to proof-of-stake, which resolved earlier concerns about network stability. This has enabled a wave of RWA projects, with launches accelerating in 2023–2024 and announcements clustering around year-end budget cycles.Over $26.4 billion in RWA tokens now use blockchains as distribution layers, with Ethereum capturing the majority share. This liquidity supports DeFi participation, where tokenized assets can interact with protocols for enhanced yield and efficiency.

RedStone's Position in the Dual Ecosystem

RedStone, a modular oracle provider, is positioning itself to serve both rails. By delivering reliable data feeds to public chains for DeFi and integrating with permissioned networks like Canton, RedStone enables accurate pricing, valuations, and risk management across environments. Kaźmierczak emphasized the necessity of supporting both: some institutional operations must remain private, while public chains drive product innovation and market access.

Challenges and Broader Implications

The dual approach introduces complexities, including integration hurdles between public and private systems and debates over privacy technologies. While zero-knowledge proofs offer cryptographic privacy on public chains, concerns persist that overly opaque implementations could create audit challenges or "black box" risks reminiscent of traditional financial scandals.Regulatory progress, such as the 2025 GENIUS Act establishing a federal framework for stablecoins as settlement layers, is accelerating adoption. Market forecasts remain bullish: projections range from $2 trillion in tokenized assets by 2030 (McKinsey) to $30.1 trillion by 2034 (Standard Chartered and Synpulse).

Conclusion

Rather than a winner-take-all scenario, the RWA landscape is maturing into a hybrid model where public blockchains provide liquidity and innovation, and permissioned networks ensure privacy and compliance. This parallel-rail strategy allows institutions to balance openness with control, potentially unlocking trillions in tokenized value as infrastructure and regulations continue to evolve.