Public blockchains are still not adequate for executing large amounts of transactions, according to a JPMorgan ex.During the BIS Innovation Summit on May 7, Umar Farooq, CEO of JPMorgan’s Onyx blockchain-based payment platform, said:The CEO’s comments came in response to the Unified Ledger, a concept introduced by the Bank of International Settlements (BIS) last year that aims to support central bank money flows, tokenized deposits and digital assets on its network.Farooq further explained that if a $100 million transaction were to fail, public blockchain validators can’t be held accountable. Farooq said:Despite the CEO’s criticism, JPMorgan’s bank-led Onyx platform is built as a private, permissioned version of Ethereum, the world’s second-largest public blockchain network. Unlike public blockchains, Onyx’s permissioned chain enables institutions to reverse transactions.Moreover, JPMorgan’s Farooq argued that the cryptocurrencies issued on public blockchains create false incentives aiming to drive more users to the networks to push the price of the coin up. He noted that blockchains, like the internet, should be considered a public good: Related: Solana could flip Ethereum in transaction fees within a week: ReportTradFi firms prefer public blockchains, says ex-Grayscale executiveDespite widespread criticism, traditional financial (TradFi) institutions prefer tokenizing assets on public blockchains.Speaking with Cointelegraph, Celisa Morin, who served as vice president of platform distribution at Grayscale until mid-2022, said that BlackRock’s recent initiative could lead to more TradFi institutions tokenizing assets on public blockchain rather than private ones. She said:Morin was referring to BlackRock’s $100 million tokenized “BUIDL” fund, which was launched on the Ethereum network on March 18.BlackRock’s BUIDL fund currently holds over $382 million and is the world’s largest tokenization fund, according to Dune data.Related: Trader loses 7-figure sum due to 0L Network hard fork
