Is Ethereum good enough for Wall Street? If history is any guide, the answer is clear

Fortune

by Jeff John Roberts

February 23, 2026

AI-Generated Deep Dive Summary

Ethereum’s ability to meet Wall Street’s demands in the traditional finance sector has come under scrutiny. While large banks and financial institutions have attempted to develop their own blockchain alternatives, historical precedents suggest that open systems like Ethereum are more likely to succeed. A recent event, Ethereum Denver, highlighted the crypto community's enthusiasm for Ethereum's potential in transforming traditional finance. Wall Street’s latest initiative, including experiments with a blockchain called Canton, aims to create a closed system with greater control over operations, but this approach has historically failed compared to open systems like Ethereum. The article notes that Wall Street’s efforts to build walled-garden blockchains are reminiscent of past failures, such as the R3 Consortium's project during a previous crypto downturn. These attempts often struggle due to lack of security and limited appeal to top talent in the tech community. Ethereum, on the other hand, has proven its resilience through events like Ethereum Denver, attracting key figures like SEC Chair Paul Atkins and fostering innovation. The debate over privacy tools, such as ZKsync, underscores the crypto community's belief in the superiority of open systems. These systems not only enhance security but also attract top developers, making them more sustainable in the long run. Wall Street’s bank-built blockchains are likely to face challenges in both functionality and popularity, further solidifying Ethereum’s position in the financial sector. This matters because the outcome will shape the future of digital finance. Open blockchain systems like Ethereum are expected to dominate due to their inherent strengths in innovation and security. The competition between open and closed systems is a critical dynamic for businesses, as it impacts technological advancement, financial stability, and market adoption. Wall Street’s efforts to develop alternatives may ultimately fall short, reinforcing Ethereum’s role in leading the transformation of traditional finance.

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Originally published on Fortune on 2/23/2026