Banks will run RWAs on two blockchain rails, says RedStone co-founder

💡 DMK Insight

Banks are diversifying their RWA infrastructure, and here’s why that matters: With Ethereum currently at $2,060.06, this shift towards both private networks and public chains could signal a growing acceptance of blockchain technology in traditional finance. Traders should pay attention to how this dual approach might influence Ethereum’s adoption rate and price stability. If banks start leveraging Ethereum for real-world assets (RWAs), we could see increased demand, potentially pushing prices higher. However, there’s a flip side. The reliance on private networks like Canton could create fragmentation in the market, leading to inefficiencies and possibly stalling Ethereum’s growth if banks opt for more closed systems. Keep an eye on Ethereum’s trading volume and any announcements from banks regarding their blockchain strategies. A sustained increase in volume could indicate bullish sentiment, while stagnation might suggest hesitation in adopting public chains. Watch for key resistance levels around $2,100 and support near $2,000 as indicators of market sentiment moving forward.