The on-chain financial landscape of 2026 is accelerating its evolution. At this inflection point, some technical solutions are beginning to truly address a long-standing challenge: how to enable institutions to participate in on-chain transactions while protecting privacy and meeting strict regulatory requirements.

Dusk Network, a Layer-1 blockchain designed specifically for regulated financial scenarios, has achieved this delicate balance through zero-knowledge proofs (ZKP) and a dual-transaction model architecture (Phoenix + Moonlight). In simple terms, institutions can complete transactions on-chain with transaction content protected by privacy, while data still meets the audit requirements of international regulatory standards such as MiCA and MiFID II. It's like finding an intersection between two parallel lines.

What's more interesting is the on-chain trend of real-world assets (RWA). As securitized products, bonds, commodities, and other traditional financial assets gradually move toward blockchain, privacy and compliance are no longer optional—they become mandatory. Once the RWA ecosystem matures, the barrier to entry for participating in global financial markets will drop significantly—as long as privacy is properly protected, anyone can participate within a compliance framework.

From this perspective, these privacy blockchains are playing a key bridge role between TradFi and DeFi. If you're following the RWA track or the development direction of privacy technology, this direction is indeed worth continuous monitoring.