Wall Street Banks Embrace Permissioned Blockchains; Ethereum More Practical, Says Fortune

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According to Fortune magazine, Wall Street institutions including DTCC, JPMorgan, and Morgan Stanley have announced blockchain initiatives. DTCC is piloting tokenized equities with JPMorgan and Morgan Stanley using Hyperledger Besu, while the London Stock Exchange plans to launch a blockchain-based 24-hour stock trading platform this year.

However, Fortune's finance and crypto editor Jeff John Roberts noted that these institutions' "blockchains" are actually permissioned networks—fundamentally different from decentralized, tamper-proof public chains like Bitcoin and Ethereum. Columbia Business School lecturer Omid Malekan argued that permissioned blockchains are "destined to fail" as they inherently favor specific corporate interests, making widespread adoption unlikely. Roberts concluded that Ethereum remains the more practical foundation for future financial innovation.

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