Institutional adoption of distributed ledger technology, like Hashsphere, is accelerating as Swift announced plans to launch a DLT of their own, choosing to utilize oracles.

Many institutions may need to decide soon whether they want to build on public networks or make use of private, permissioned networks such as Hashgraph’s Hashsphere.

While Hedera (HBAR) offers transparency and ecosystem connectivity in its public form, Hashsphere provides the privacy, control, and customization that regulated organizations will often require.

Privacy & Data: How firms can utilize Hashgraph’s HashSphere

A key motivation for using Hashsphere is the privacy of data and trusting in the network’s own abilities to keep that data secure and safe.

Banks and corporations frequently deal with sensitive information, client transactions, internal financial data, and files that cannot be exposed to public third parties, even if it is encrypted.

Hashsphere allows organizations to maintain the same consensus efficiency and finality as Hedera’s public ledger while keeping all records confined to a closed, permissioned environment.

Hashsphere’s model ensures that only verified participants can read, write, or handle transactions. Financial institutions will be able to comply with strict confidentiality laws and data residency requirements without sacrificing the performance and benefits of the Hashgraph consensus.

Governance within HashSphere

Hashsphere is able to offer enterprises greater governance flexibility. While Hedera’s public network is managed by its global Hedera Council, a private Hashsphere network can be governed internally by the participating banks or corporations.

Rob Allen, Australian Payments Plus & Hedera Enterprise Adoption Team:

For enterprises looking to participate in the digital economy, HashSphere offers the ideal balance—enabling innovation and growth with best-in-class Hedera technology and services, while ensuring security, transaction privacy, and self-sovereignty. Most importantly, it eliminates lock-in, allowing businesses to evolve without being confined to a single network model.

Hedera’s governance enables companies to have a say in the direction and usage of the network while being able to cover jurisdictional rules and compliance standards.

For Hashsphere, a consortium of banks could operate a ledger to settle cross-border payments while ensuring that nodes are operated by regulated institutions and that each transaction follows agreed compliance rules.

This kind of governance is difficult to achieve on public networks, where participation and consensus mechanisms are open by design.

Integration with Legacy Infrastructures

Hashsphere can integrate with the existing financial infrastructure, acting as a high-performance layer for tokenization, payments, and reconciliation without requiring full system overhauls.

By maintaining compatibility with the same Hashgraph architecture that powers Hedera, Hashsphere allows organizations to experiment in a private sandbox environment while preserving the option to connect to public networks for interoperability in the near future if they wish.

This hybrid model, where sensitive operations remain private but public interoperability is optional, can appeal to the world’s largest financial institutions.

Security and Performance Advantages on Hedera

HashSphere contains all the technical strengths of the Hashgraph consensus, giving HashSphere robust security, high throughput, and finality within seconds. For leading financial entities, this means faster settlement times.

At Sibos 2025, reducing transaction times was a big topic, with Swift aiming to reduce transaction waiting times to mere minutes by employing new tactics and DLT integrations.

Because Hashsphere operates under the control of known, permissioned participants, it removes the uncertainty of public validators or unpredictable gas fees, which other networks are prone to.

A Bridge Between Public and Private Finance

Hashsphere represents a strategic step for enterprises that want the performance and integrity of Hedera without exposing sensitive transactions to unauthorized third parties.

Banks, asset managers, and corporations can use Hashsphere to modernize internal workflows, pilot tokenized instruments, or test digital asset infrastructure in a controlled environment.

As digital finance matures, private networks like Hashsphere could serve as a way for traditional finance to make the leap into using distributed ledgers, following in the path of Swift and leading banks such as Lloyds, Santander, Citi, and others.