The on-chain capital markets are evolving into a fragmented ecosystem, with different blockchains serving specific functions rather than a single blockchain dominating all activities. Ethereum remains the liquidity hub, excelling in institutional DeFi, funds, and credit, despite high fees and a fragmented ecosystem.
Other versatile chains like Solana, Avalanche, Polygon, and Aptos are selected for specific purposes such as fast payments, compliant subnets, pilot real-world assets (RWA), and digital asset transactions. Meanwhile, utility and settlement chains like Tron, Stellar, XRP, Hedera, and Algorand focus on payments, stablecoins, and settlements, offering cost-effective, fast, and reliable services but lacking complex DeFi capabilities.
Specialized RWA chains like Provenance and XDC are tailored for lending, securitization, and trade finance, closely aligning with traditional finance needs. Permissioned networks for institutions, such as Canton and Kinexys, prioritize privacy and control, foregoing public liquidity.
On-Chain Capital Markets Fragment by Functionality
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