Public Blockchains and Regulated Financial Institutions

2026

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AI-generated summary

1) This report explores the key challenges and layered solutions for regulated financial institutions looking to adopt public blockchains, emphasizing the need for collaboration between institutions, developers, and policymakers.
2) * Identifies four core challenges for financial institutions: front-running, transaction censorship, receiving unsolicited tokens, and gas fees paid to sanctioned entities.
* Proposes a layered framework for solutions, spanning application, smart contract, token standards, blockchain network, network governance, and regulatory layers.
* Discusses near-term mitigations and long-term fundamental improvements required at protocol and governance levels, highlighting the critical role of regulatory clarity.
3) Public blockchains, financial institutions, regulation, blockchain technology, cryptocurrency

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