Traditional finance's interest in blockchain is heating up, but three hurdles stand in the way—privacy protection, scalability, and regulatory compliance. Dusk Network, with its unique technical solution, is becoming a key node connecting Web3 and traditional finance, especially in the trillion-dollar market of real-world asset (RWA) tokenization.

First is the solution to the contradiction between privacy and compliance. Traditional institutions handle sensitive data and transaction intelligence. They cannot accept the fully transparent setting of public blockchains. Dusk's Confidential Smart Contracts (XSC) can run business logic and transaction information directly on-chain in encrypted form. For example, in complex bond issuance or private placements, transaction terms, pricing details, and even participant identities can be hidden from competitors. At the same time, the accompanying compliance tools (selective disclosure mechanisms) can open necessary information windows to regulators, meeting anti-money laundering and customer identity verification requirements. This balance of protecting privacy while complying with regulations is the biggest advantage attracting institutional participation.

Second is the tailored solution for RWA tokenization. Traditional assets like real estate, bonds, and artworks need to be moved onto the blockchain, which involves complex legal frameworks, investor privacy protection (who holds the shares is inherently private), and transparency requirements for regulators. This calls for a blockchain underlying layer that can handle complex logic, ensure privacy, and accommodate regulatory transparency. Dusk's technical architecture precisely fills this gap, creating the foundational conditions for large-scale applications in the RWA track.