Asset tokenization in banks: a real threat to bitcoin that no one talks about
While the market discusses MicroStrategy's impact on Bitcoin, the real long-term threat to BTC comes from a different source. It is the mass adoption of asset tokenization by the world's largest banks on private blockchains. In my firm belief, it is this trend, not the actions of individual corporations, that could fundamentally change the landscape of the crypto industry.
Wall Street moves to private rails
More than 15 leading global banks are actively launching solutions for tokenized finance. JPMorgan's Kinexys platform (formerly Onyx) has already processed over $3 trillion since launch, with daily transaction volumes exceeding $7 billion. Notably, the bank's CEO Jamie Dimon continues to criticize Bitcoin, yet his organization is actively building blockchain infrastructure.
However, the key arena is the Canton Network. Here, DTCC is tokenizing US government bonds with plans to complete the project by 2026. HSBC is testing tokenized deposits, and Goldman Sachs is settling tokenized bonds. The results are impressive: in the 30 days leading up to the end of June, Canton collected about $60 million in fees, while Ethereum collected only $11 million over the same period.
Why is this a threat to Bitcoin?
JPMorgan analysts led by Nikolaos Panigirtzoglou directly point out: if settlements and assets move to permissioned networks, public blockchains will eventually lose activity, liquidity, and capital inflows. Institutional players choose private systems due to manageability, confidentiality, and legal predictability.
The Bank for International Settlements (BIS) has also expressed similar concerns, stating that public blockchains face issues of scalability and financial transparency. The regulator supports unified ledgers based on regulated platforms.
The scale is already impressive: about $31 billion in tokenized real-world assets are hosted on public blockchains, with two-thirds of that amount on Ethereum. But JPMorgan expects that as the market grows, most issuance and settlement will move to closed platforms with permissioned access.
Alternative view and my opinion
There is also an opposing viewpoint: Bitcoin is valuable not for mass use in finance, but due to its scarcity and neutral status. Some analysts already prefer stablecoins and tokenization over direct investments in BTC.
My expert assessment: Asset tokenization in banks is not just a technological trend, but a fundamental shift. Bitcoin will remain as digital gold and a store of value, but its role in global finance could significantly diminish. Institutional money will go where there is control and predictability, not where decentralization reigns. Investors should closely monitor the development of private blockchain networks — that is where the future of financial infrastructure is currently being shaped.