The on-chain financial landscape of 2026 is accelerating its evolution. At this turning point, some technological 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 specifically designed for regulated financial scenarios, achieves this delicate balance through zero-knowledge proofs (ZKP) and a dual transaction model (Phoenix + Moonlight) architecture. Simply put, institutions can complete transactions on-chain with transaction details kept private, while still meeting international regulatory standards such as MiCA and MiFID II for auditability. This sounds like finding an intersection between two parallel lines.

Even more interesting is the trend of real-world assets (RWA) going on-chain. As traditional financial assets like securitized products, bonds, and commodities gradually move onto blockchain, privacy and compliance are no longer optional but essential. Once the RWA ecosystem matures, the threshold for participating in the global financial market will be significantly lowered—anyone can participate within a compliant framework as long as privacy is protected.

In this way, such privacy-focused blockchains are playing a key bridging role between TradFi and DeFi. If you are interested in the RWA track or the development of privacy technology, this direction is definitely worth continuous follow-up.