Global Major Banks' Tokenization Speed Race...Warning: 'More Dangerous than MicroStrategy (MSTR)'

▲ Bitcoin (BTC), Bank/AI Generated Image

More than 15 global major banks have begun to accelerate financial tokenization based on private blockchains. Wall Street has issued a warning that this could shake Bitcoin's (BTC) long-term position. JPMorgan identified the expansion of the banking sector's own blockchain financial network as a greater structural risk than the large amount of Bitcoin held by MicroStrategy.

According to BeInCrypto on July 10 (local time), an analysis team led by JPMorgan analyst Nikolaos Panigirtzoglou analyzed that if payments and assets move to permissioned blockchains, public blockchain activity, liquidity, and capital could decrease in the long term. This trend, where more than 15 of the world's largest banks are building tokenized finance on private blockchains, was seen as a long-term risk factor for Bitcoin.

JPMorgan's blockchain platform, Kinexys, has processed over $3 trillion in transactions since its launch, with daily transaction volume exceeding $7 billion. JPMorgan built the platform under the name Onyx in 2020 and changed its name to Kinexys in 2024.

The institutional finance tokenization movement is also rapidly spreading on the Canton Network. DTCC is pursuing the tokenization of its custodied U.S. Treasury bonds by 2026, and HSBC has completed a pilot project for tokenized deposits. Goldman Sachs is settling tokenized bonds on the same network. By the end of June, the Canton Network collected approximately $60 million in fees over 30 days, significantly exceeding Ethereum's (ETH) $11 million.

More than 15 major banks have joined the joint tokenized deposit network promoted by The Clearing House, aiming for a launch in 2027. Public blockchains currently hold approximately $31 billion in tokenized real-world assets, with about two-thirds concentrated on Ethereum. JPMorgan expects that with market growth, a significant portion of issuance and settlement activities will shift to permissioned financial networks.

JPMorgan assessed that MicroStrategy, which holds about 4% of the total Bitcoin supply, and its new Bitcoin selling policy could increase short-term volatility but are not a structural threat. Conversely, the banking sector's trend of expanding financial tokenization on its own blockchains could foster a financial market that bypasses public networks. While counterarguments are raised, valuing Bitcoin for its scarcity and neutrality, the banking sector is accelerating the construction of blockchain financial networks tailored to its own standards.

[Article Key Summary]

-More than 15 global major banks are accelerating the establishment of private blockchain-based tokenized finance.

-JPMorgan identified the banking sector's financial tokenization, bypassing public blockchains, as a greater long-term risk to Bitcoin than MicroStrategy.

-JPMorgan's Kinexys has processed over $3 trillion in cumulative blockchain transactions, and the banking sector's expansion of its own financial network is in full swing.

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