Why TPS Alone Fails as a Measure of Blockchain Scalability
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Wall Street’s Next Edge: Owning the Blockchain Rails
High-frequency trading firms are pivoting from hardware-based speed advantages to controlling onchain execution layers—running validators, sequencers and optimized data delivery—to secure durable trading edges. That push intersects with a broader industry shift in which platforms, stablecoin issuers and middleware capture an outsized share of transaction economics, creating competing rent-seeking pressures, lock-in risks and regulatory questions as institutional flows scale onchain.
Infrastructure, Not Ideas, Is What’s Blocking Global Tokenized Markets
Tokenization of securities and real assets is moving from promise to practice, but public blockchains still lack the throughput, latency/finality and protocol-level protections against extractable value needed for institutional trading. Unless engineers build base layers with vastly higher sustained TPS, sub-second finality and neutral, auditable ordering, large custodians and trading firms will either stay on the sidelines or create controlled settlement rails.
Customer Bases, Not Consensus, Will Decide the Next Wave of Blockchain Winners
Major payment and finance platforms are increasingly launching proprietary blockchains that plug directly into their existing user and merchant networks, converting off‑chain flows into on‑chain activity almost immediately. Complementary market data shows fee and revenue capture is concentrating at the application and middleware layers—strengthening the case that distribution and control over settlement rails will matter more than raw consensus performance.

Global: Vitalik Buterin Recasts Layer‑2s as a Spectrum, Not Ethereum’s Future Backbone
Vitalik Buterin argues that recent L1 capacity and planned simplifications reduce the case for rollups as the singular scaling path and urges layer‑2 teams to stop implying they inherit full Ethereum security unless they meet strict decentralization standards. He ties this market repositioning to a broader 2026 agenda — protocol “cleanup,” lightweight clients, privacy tooling and governance changes — that together shift value toward explicit guarantees and differentiated product features.
Revenue Gravity Shifts to DeFi Apps as Protocols Outearn Base Chains
Recent fee data shows user-facing decentralized finance applications are taking a growing share of crypto revenues, outpacing base-layer blockchains by a wide margin. This reallocation of fees alters incentives for investors and builders, steering attention toward wallets, DEXs and protocols closest to users.
LayerZero unveils 'Zero' blockchain with Citadel Securities and institutional backers betting on on‑chain markets
LayerZero Labs announced Zero, a high-throughput blockchain for trading and post-trade processes, and secured strategic commitments from Citadel Securities, ARK Invest and others. Tether Investments also disclosed a stake to accelerate LayerZero’s messaging and omnichain tooling—part of a broader push that includes an onshore stablecoin product (USAT) planned with Anchorage Digital Bank—raising fresh regulatory and custody considerations alongside promises of extreme scalability.

Franklin Templeton and SWIFT push for always-on banking built directly on blockchains
At Consensus Hong Kong, Franklin Templeton and SWIFT argued that issuing funds and bank liabilities as native blockchain tokens could enable near‑continuous settlement and reduce operating costs, with short‑duration money market funds flagged as a pragmatic early use case. They said scaling this model depends on interoperability layers (such as SWIFT’s orchestration proposal), clearer regulatory and accounting treatment, institutional custody resilience and fixes to throughput, latency and transaction‑ordering that support professional market‑making.
Vitalik Recasts Ethereum’s Scaling Story as Ecosystem Shifts Toward Security and Openness
Ethereum’s co‑founder signaled a strategic reassessment of a rollup‑first scaling narrative as on‑chain capacity and lower fees change the calculus for layer‑2 projects. At the same time, the industry is advancing open miner tooling, formal post‑quantum planning, fresh DeFi rails for XRP, and a major analytics funding round — together forcing clearer security guarantees, governance choices and multi‑year migration plans.