The article argues that the preference for closed, private blockchains by financial institutions over open, permissionless systems is coming to an end. Three factors will drive this change: the importance of liquidity, the evolving technological maturity and resilience of public blockchains like Ethereum, and the regulatory acceptance of the public blockchain ecosystem. The article suggests that digital assets on private networks may not receive fair pricing opportunities and may face scrutiny from regulators. It predicts that regulators will start questioning the use of private networks for assets and highlights the acceptance of public networks in regulations like the EU's Markets in Crypto Assets (MiCA). However, it should be noted that this article reflects the personal views of the author and not those of EY.



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