Institutional capital is eager for on-chain efficiency, but once real money is involved, they turn away. Where is the problem? Simply put, it's three words: lack of trust.

Moving securities worth billions of euros onto the chain, traditional financial institutions face three major hurdles:

First is privacy issues. Public blockchains are transparent, which sounds ideal but is disastrous for institutions—your trading strategies and holdings data are visible to the world. Who dares to play that game?

Second is compliance issues. Regulatory requirements like KYC and AML are almost nonexistent in the current on-chain environment. Audit trails are missing, and when problems arise, no responsible party can be found.

Third is technical costs. Building a dedicated chain that is both secure and compliant? That’s an astronomical number, and in the end, it becomes an isolated island.

Dusk’s approach is different. It doesn’t try to do everything at once but designs a modular system to address these challenges one by one. The core concept is "compliant privacy"—protecting data confidentiality while allowing regulators to see what they need to see.

The operation logic of the Dusk ecosystem is a three-layer progression. The bottom layer is application access; through DuskEVM’s mainnet upgrade in mid-January this year, developers can deploy privacy applications directly, lowering the entry barrier. The middle layer is the protocol-level privacy protection mechanism, ensuring that sensitive business information is not leaked. The top layer is the compliance audit interface, providing regulators with necessary visualization permissions while maintaining user privacy boundaries.

Dusk coin (DUSK) plays a role similar to a value measure for this system. When RWA truly moves onto the chain at scale, the importance of this infrastructure that balances privacy and compliance will be revalued.