Consortium Chains Make a Comeback in Traditional Finance

A growing trend in traditional finance is to develop dedicated chains that are purpose-specific, led by certain institutions, and do not necessarily involve token issuance. This concept, known as consortium chains, was initially popular from 2016 to 2022 but eventually faded from the center of discussion.

However, with the rise of stablecoins and regulatory-backed demand, consortium chains have made a comeback. Banks are now developing private chains that can interconnect with each other, allowing for real-time settlement without waiting for the next business day.

The first wave of enterprise blockchain enthusiasm was marked by projects such as JPMorgan's Quorum and IBM's Hyperledger Fabric. However, these efforts ultimately failed due to a lack of pressure to cooperate and a focus on technology rather than solving specific problems.