Real world assets don’t need new gatekeepers.

Comment by: Joaquin Mendes, Tyco Chief Operating Officer

For centuries, value moved between hands: gold for grain, cattle for land. No median is determined on arbitrary values; The price is determined directly between the parties. No middleman decides how much a cow is worth, whether the deal is fair, or whether or not a person is qualified to do the business. The exchange was simple: one party had something the other wanted, they agreed to the deal, and the transaction was complete.

These exchanges have become more complex. Banks hold funds, brokers trade assets, and custodians verify ownership. This destroys the relationship between buyer and seller, and reduces agency. Today, institutions set property values, control access and determine conditions.

This growing institutional adoption is promising, but the approach is important. Institutions such as BlackRock and Greyscale are investing heavily in tokenized real-world assets (RWAs), but many rely on permissioned blockchains, centralized layer 2s, and private networks — which undermine the promise of blockchain by introducing unnecessary intermediaries.

New porters

Permissioned chains limit participation and terms, while centralized chains become a single point of failure, allowing a few to dictate the order of transactions and filter trades. Private chains lock down assets, put control in the hands of the operator and severely limit interoperability.

Consider a tokenized asset worth $10 million. If it is divided into 10,000 pieces and traded on a permissioned chain or centralized layer 2, participation still requires gatekeeper approval. The value of this property remains subject to the rules of the forum rather than a direct agreement between the parties. The broker is not removed; They are now in chains.

The industry prefers control

The reasons are straightforward.

Regulatory compliance is the main issue. Controllers need identity verification, transaction control and enforcement capabilities. The industry requires this centralized control (controlled by a single operator) because this is how traditional finance works. If authorities need to freeze assets or reverse transactions, a centralized operator (a regulatory body) can act immediately.

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This level of control increases regulatory risk: a centralized blockchain could become a regulated medium, imposing new licensing and security obligations that operators had not anticipated. The risk of unexpected consequences is high.

Legal liability creates hesitation. These real concerns are valid, but responding by creating a centralized infrastructure on the blockchain defeats its primary purpose.

The right solution

Regulatory requirements do not require a centralized infrastructure. ‘Know Your Customer' (KYC) and transaction controls work more effectively with transparency on public chains at the application level. Public clusters that inherit Ethereum's security deliver key benefits: they provide compliance, ensure transparency, and support wider participation more securely than permissioned alternatives.

They solve centralization without meeting institutional requirements. Ethereum validators control sequencing, eliminating single points of failure. Transactions are settled with the full security of Ethereum. This approach provides benefits such as reducing operational risks, improving regulatory compliance and maintaining resource availability. The underlying layer remains permissionless, while applications implement the required compliance.

A well-designed blockchain is trustless by design, ensuring the integrity of the world's ledger through cryptography and economic consensus rather than relying on human trust. This eliminates the need for a dedicated operator, dealing with security risks and regulatory concerns from central control.

This technology exists and it works. Institutions can apply for compliance and identity verification as they meet regulations – without adding new gatekeepers.

The downside

The value of the RWA market can reach trillions. Today's infrastructure choices determine whether assets are freely traded or whether traditional finance is simply replicated on a new ledger.

Continuing with a permissioned or centralized blockchain only moves old blocks to new systems. Contrary to the goals of blockchain technology, access, engagement and wealth building are left in the hands of the gatekeepers.

Stop building solutions

The industry already has an answer. Ethereum is a highly decentralized, independent, reliable and secure blockchain. Consolidations inherit these strengths by offering faster, cheaper transactions, institutional-level settlements, and transparency mandated by regulators. Benefits include increased market access, robust infrastructure and built-in compliance. They meet all the requirements of RWA without reintroducing the middleman that blockchain was meant to eliminate.

Institutions that follow centralized or permissive approaches make the wrong choice. Reinventing traditional finance on the blockchain replicates the same risks: single points of failure, dependency on operators, and gatekeeper-controlled access.

Adopt a wraparound infrastructure now to enable true compliance and true decentralization. Reject legacy barriers and shape a fairer and more open financial system.

Commentary by: Joaquin Mendes, Tyco Chief Operating Officer.

This opinion article presents the professional view of the contributor and may not reflect the views of Cointelegraph.com. While this content has undergone editorial review to ensure clarity and relevance, Cointelegraph remains committed to transparent reporting and maintaining the highest journalistic standards. Readers are encouraged to do their own research before taking any action related to the company.