Traditional financial institutions want to enter DeFi, and the biggest hurdles are twofold—how to balance compliance and privacy?

As early as 2018, some projects have been exploring this issue. Dusk uses a modular architecture to solve this problem. Simply put, institutions can assemble decentralized solutions like building with LEGO bricks, based on their own risk control standards, offering great flexibility.

The key is to walk on two legs: on the privacy side, use encryption technology to lock sensitive business information, while transactions remain auditable, satisfying both internal compliance departments and external regulators. It may seem contradictory, but it has indeed been achieved.

Tokenization of real assets is the most promising area. Real estate, bonds, artworks... these items need to be on-chain efficiently and compliantly, and Dusk provides a feasible solution.

The ecosystem is also moving. Collaborations with RegTech are expanding, not to bypass regulation, but to establish sustainable models. Financial applications demand uncompromising security, so every aspect of protocol design must be meticulously crafted.

This track is inherently large, and market gaps truly exist. If the rigorous traditional financial system and blockchain innovation capabilities can truly be integrated, it will open up new pathways.