Banks Using Public Blockchains: Projects and Networks

Banks using public blockchains are applying blockchain technology to tokenized assets, capital markets, cross border payments and programmable settlement rather than replacing traditional banking systems. This page is for investors, researchers and financial-services professionals tracking which financial institutions use public blockchain networks, how the infrastructure works and what regulatory, privacy and operational challenges remain.

Key Takeaways

• UBS, Santander and Société Générale have completed financial transactions or issued financial instruments using public blockchain infrastructure, particularly Ethereum.

• Public blockchains provide global interoperability and a common programmable layer for financial institutions, wallets, smart contracts and tokenized assets.

• Smart contracts can automate financial processes, settlement instructions and compliance workflows, potentially reducing operational friction and manual intervention.

• J.P. Morgan's Kinexys averaged about $7 billion in daily transaction volume by May 2026, although Kinexys itself is permissioned infrastructure rather than a permissionless public blockchain.

• Regulatory uncertainty, data privacy concerns, operational resilience and integration with legacy systems remain important barriers to wider blockchain adoption.

Which Banks Are Using Public Blockchains?

Several major financial institutions have moved beyond laboratory experiments and used public blockchain infrastructure for live or pilot financial products.

UBS Asset Management launched uMINT, a money market investment built on Ethereum distributed ledger technology. UBS says its broader strategy uses both public and private blockchain networks for fund issuance and distribution. UBS Tokenize has also executed digital securities and fund transactions on public blockchain infrastructure.

Santander issued a $20 million bond directly on the public Ethereum blockchain in 2019. The cash used for settlement and coupon payments was also tokenized, reducing the number of separate processes and intermediaries involved.

Société Générale issued €100 million of covered bonds as security tokens on Ethereum in 2019 and subsequently expanded its blockchain-based capital-markets activity.

Why Financial Institutions Use Public Blockchains

Public blockchains provide financial institutions with globally accessible infrastructure that can connect different participants without requiring a separate integration pipeline between every institution.

Blockchain technology offers a shared distributed ledger and programmable business logic through smart contracts. Banks can use this programmable infrastructure to automate issuance, payments, asset transfers, compliance checks and other operational processes.

Tokenized assets are financial instruments represented as digital tokens on distributed ledgers. The broader shift toward real-world asset tokenization shows how securities, funds and other real world assets can move onto blockchain networks while retaining links to traditional legal and financial systems.

Fractional ownership can make some assets available in smaller denominations and potentially enhance liquidity. UBS, for example, says tokenized products can support smaller denominations and greater operational efficiency across issuance, settlement and lifecycle management.

Public blockchains also support a wide ecosystem of wallets and applications. That interoperability can reduce operational friction and make blockchain based financial services easier to connect across different platforms.

Cross Border Payments, CBDCs and 24/7 Settlement

Public blockchain infrastructure can support 24/7 programmable settlements because blockchain networks are not inherently restricted to conventional banking hours.

Traditional cross border payments may pass through multiple intermediaries, correspondent banks and reconciliation systems. Blockchain transactions can instead coordinate the movement of digital assets and digital currency through shared infrastructure.

The BIS's Project Mariana tested cross-border trading and settlement of hypothetical wholesale central bank digital currencies using DeFi concepts on a public blockchain. The project demonstrated a common token standard, bridges between different networks and automated market makers for foreign-exchange settlement.

This work illustrates how central banks and commercial banks could eventually use interoperable infrastructure while retaining control over issuance and access. Project Mariana was experimental and did not indicate that participating central banks planned to issue the tested CBDCs.

The role of tokenized central bank money, commercial bank money and government securities within future financial systems is also central to current BIS crypto policy on tokenization and banking.

Smart Contracts, Compliance and Operational Efficiency

Smart contracts can automate financial processes by executing predefined business rules once specified conditions are satisfied.

Banks are exploring automated compliance workflows for KYC, anti money laundering requirements, sanctions screening and regulatory reporting. This can reduce manual intervention, although it does not remove the financial institution's legal responsibility for compliance.

The BIS's Project Mandala demonstrated that compliance checks could be incorporated into cross-border transaction protocols. Its design can generate proof that required checks were completed before payment instructions proceed while privacy-preserving technologies such as zero-knowledge proofs help limit disclosure of underlying sensitive data.

This approach could support blockchain based identity solutions and more automated compliance while preserving data protection.

Blockchain technology can also improve auditability because an authorized participant can inspect a consistent transaction history. However, transparent ledgers create data privacy concerns when banking information is sensitive or subject to data protection laws.

Trade Finance and Transaction Costs

Blockchain can improve trade finance by reducing repeated document exchanges, reconciliation and manual processing across multiple intermediaries.

HSBC has previously demonstrated blockchain-based trade-finance processes capable of reducing lengthy document workflows, although these systems used enterprise blockchain infrastructure rather than permissionless public blockchains. The distinction matters because not every blockchain banking project is a public-chain deployment.

Shared blockchain ledgers can similarly reduce reconciliation costs by allowing participants to work from consistent transaction records.

A widely cited 2018 industry forecast estimated that blockchain could generate more than $27 billion in annual bank savings by 2030. That figure is a forecast rather than a measured outcome and should not be interpreted as guaranteed transaction-cost savings.

The larger structural opportunity is reducing duplicated operational processes rather than simply eliminating intermediaries.

Public Blockchains vs Legacy Banking Systems

Public blockchains can provide interoperability and programmable settlement, but banks still need seamless integration with existing systems.

Traditional banking infrastructure includes core banking systems, payment networks, custody systems, risk management platforms and regulatory databases. Replacing or connecting these systems requires substantial time, testing and resources.

Scalability also depends on the blockchain. Older Ethereum Layer-1 configurations have commonly been associated with throughput measured in tens of transactions per second, while Layer-2 systems and newer blockchain platforms can process substantially more. Therefore, a fixed 15–30 transactions-per-second figure should not be treated as a universal blockchain limit.

Institutional adoption consequently depends on more than transaction speed. Key blockchain requirements for banks include secure transactions, data integrity, operational resilience, legal certainty, liquidity management and compliance with regulatory frameworks.

The development of institutional-grade shared networks is also reflected in initiatives such as Global Layer One infrastructure for tokenized financial markets, which explores common infrastructure for regulated financial transactions.

Public Blockchains and Financial Inclusion

Public blockchain networks can support financial inclusion when lower transaction costs and digital access reduce dependence on expensive or fragmented financial infrastructure.

Digital transactions may allow financial services to operate across borders and outside limited banking hours. Fractional tokenization may also lower minimum investment sizes for certain assets.

However, blockchain technology alone cannot solve financial exclusion. Users still need identity infrastructure, internet access, appropriate legal protections and access to suitable financial services. Regulatory requirements remain applicable even when transactions occur on public blockchains.

How Gate Can Help

Public-chain institutional projects make blockchain network, wallet and smart-contract verification increasingly relevant to digital-asset users. Gate's decentralized ecosystem, now organized around Gate DEX, provides access to on-chain markets and blockchain-based assets while users retain responsibility for verifying the network, token contract, transaction permissions and associated risks.

Institutional involvement does not make a blockchain asset risk-free. The issuer, legal rights, underlying assets, custody structure and applicable regulatory framework remain important when evaluating tokenized financial products.

Conclusion

Banks using public blockchains are increasingly applying the technology to tokenized securities, funds, digital money and programmable settlement. Public networks can provide global interoperability, transparent transaction records and 24/7 infrastructure, while smart contracts can automate financial workflows. Wider adoption will depend on regulatory clarity, data privacy, operational resilience, scalability and integration between blockchain platforms and existing financial systems.

FAQ

Are major banks actually using public blockchains?

Yes. UBS, Santander and Société Générale have documented transactions or financial products using public Ethereum infrastructure. Other banks primarily use private networks or hybrid blockchain models.

Can public blockchains settle bank transactions instantly?

Public blockchains can support near-real-time or continuous settlement, but settlement speed depends on the network, smart contracts, asset structure and off-chain regulatory or banking processes.

Are banks using public blockchains for cross border payments?

Banks and central banks are testing blockchain models for cross border payments and settlement. BIS Project Mariana demonstrated cross-border wholesale CBDC trading and settlement using public blockchain infrastructure.

Can blockchain automate KYC and AML compliance?

Blockchain systems can automate portions of compliance checks and generate cryptographic evidence that requirements have been satisfied. Financial institutions nevertheless remain responsible for KYC, AML, sanctions screening and other regulatory obligations.

Will public blockchains replace traditional banking systems?

Current projects point more toward integration than wholesale replacement. Banks are combining blockchain capabilities with existing payment, custody, risk-management and legal systems rather than abandoning traditional banking infrastructure.