I first encountered the idea of bank run private blockchains around 2016 to 2017. Almost all of those initiatives failed, and the reason is structural, not accidental.
A private blockchain adds complexity without adding new trust guarantees. If a single institution controls participation, validation, and governance, the system offers no meaningful advantage over a conventional centralized database running on AWS or similar infrastructure.
Blockchains are fundamentally designed for public coordination among parties that do not trust each other. Their value comes from openness, shared incentives, and external verification. Once you remove those properties, you remove the core reason a blockchain exists.
Operating a private blockchain imposes heavy costs. Custom infrastructure, consensus maintenance, identity management, and ongoing coordination overhead. Yet it delivers none of the benefits of decentralization, censorship resistance, or credible neutrality.
As a result, private blockchains tend to collapse under their own weight. They are more expensive than centralized systems, less efficient, and solve no problem that modern databases cannot already solve better.
The smart influencers are posting about how NYSE launching their own blockchain is good for everyone else's blockchain. Or at least trying, so I'll try and do so better. Every private blockchain has failed to get adoption. So if one ever does get adoption it will just feed more users to the real stuff, where the real potential is. :)