There is a contradiction in the public chain world: traditional finance professionals love the efficiency of blockchain but shiver at the transparent on-chain ledger. Imagine institutions accustomed to signing contracts in dark rooms suddenly brought into a glass hall with no partitions, where every transaction and every position is under public scrutiny. That’s why, by the end of 2025, as the MiCA regulations are deeply implemented in Europe, institutions no longer pursue the elusive ideal of decentralization. What they urgently need is a smart vault that is both resistant to prying and capable of providing regulators with real-time compliant audits.

This is precisely why Dusk has suddenly risen in the RWA track. It’s not about tearing down traditional financial walls but about installing a layer of intelligent one-way transparent glass on the blockchain.

Looking at other public chains, handling privacy often takes extreme approaches. On Ethereum, data is fully exposed, giving a complete view of institutional trading logic and positions. On the other hand, some privacy coins are directly blacklisted by regulators. Dusk’s core weapon is Citadel—a zero-knowledge proof-based identity verification system. Simply put, it allows institutions to prove to regulators that they meet KYC and AML requirements without revealing sensitive information. This is not just a demonstration but a proof. The institution’s trade secrets are protected, compliance is unassailable, and both sides are satisfied.

At the technical level, the system is supported by Dusk’s self-developed Piecrust virtual machine. Compared to general-purpose solutions, it is finely designed to address the conflicting needs of privacy and compliance.