Etherealize CEO Vivek Raman warns that Wall Street's renewed focus on private, permissioned "consortium chains" like Canton and Tempo is a "race to the bottom" that risks recreating siloed systems. Backed by Vitalik Buterin and $40 million in funding, Etherealize is pitching Ethereum's open mainnet as a neutral base layer for institutional assets. While some experts note that enterprise sales currently favor gated networks, BlackRock's launch of GENIUS Act-compliant funds on Ethereum highlights growing momentum for open, public rails.
Permissioned blockchain resurgence
- ▪Traditional finance firms are increasingly adopting permissioned systems such as Digital Asset's Canton Network, Circle's ARC, and Stripe's Tempo blockchain due to their inherent privacy and reduced counterparty risk.
- ▪Etherealize co-founder and CEO Vivek Raman warned on August 15, 2026 that the resurgence of private, permissioned consortium blockchains among traditional finance firms is a race to the bottom.
Etherealize institutional adoption strategy
- ▪Etherealize CEO Vivek Raman advocates using Ethereum's open mainnet as a neutral base layer, allowing institutions to build custom permissioned and privacy-preserving features at higher layers.
- ▪Etherealize, which was seeded by a grant from Vitalik Buterin and the Ethereum Foundation in January 2025, raised $40 million in Series A funding later in 2025 to attract traditional finance firms to Ethereum.
Open versus gated blockchain debate
- ▪Christian Catalini of the MIT Cryptoeconomics Lab stated that the current enterprise sales phase of blockchain adoption favors curated networks with clear sponsors, which may prevent pro-competitive benefits from materializing.
- ▪Etherealize CEO Vivek Raman stated that open networks provide maximum interoperability and liquidity, whereas consortium chains require permission and reduce incentives for late-joining members.
Historical consortium chain failures
- ▪In 2016, major banks including Goldman Sachs, Morgan Stanley, and Santander withdrew from R3's distributed ledger consortium Corda before the end of that year.
- ▪Early enterprise blockchain adoption in 2016 saw numerous players join the Linux-affiliated Hyperledger ecosystem and R3's consortium effort.
BlackRock Ethereum-based funds
- ▪BlackRock initially launched its BUIDL token on the Ethereum network prior to receiving regulatory clarity.
- ▪BlackRock expanded its tokenized cash offerings on Ethereum with new money market funds that comply with the GENIUS Act, the United States regulatory framework for stablecoins.
Story comments
Loading comments…