Former Grayscale executive reveals Traditional Finance companies now favor public blockchains.

According to a former Grayscale executive, traditional financial institutions are increasingly interested in tokenizing assets on public blockchains. Celisa Morin, who was previously the Vice President of Platform Distribution at Grayscale, explained that there is a new trend among traditional finance (TradFi) institutions, led by BlackRock, to explore tokenization on public chains rather than private ones. BlackRock recently launched a $100 million tokenized ‘BUIDL’ fund on the Ethereum network, which has now grown to hold $288 million in assets. Despite the potential legal challenges associated with public blockchains, Morin believes that many firms will follow BlackRock’s lead. She also mentioned that Franklin Templeton had already launched its tokenized money market fund on the Ethereum layer-2 network Polygon in October 2022. In addition, Morin expressed doubts about the approval of spot Ether exchange-traded funds (ETFs) in May, citing the lack of communication between the United States Securities and Exchange Commission and prospective fund issuers as a negative sign.