Traditional financial assets need to be truly brought onto the chain, but there are two unavoidable issues to face.

First is the contradiction between privacy and transparency. The transaction details of assets like stocks, bonds, and real estate—prices, quantities, buyers and sellers—have always been kept confidential in traditional finance, especially for large transactions between institutions. However, most public blockchains are exactly the opposite, exposing everything under the sun, with all transaction data fully visible. This makes it impossible for financial institutions to use.

Second is the conflict between compliance and anonymity. Financial activities must adhere to regulations such as anti-money laundering and know-your-customer requirements, which require identity verification and regulatory oversight. But many projects in the blockchain world pursue complete anonymity or pseudonymity, which are incompatible with these requirements.

DUSK’s confidential smart contract technology is precisely designed to solve these two problems. During the RWA securities issuance phase, from token creation to investor subscription and transfer records, the entire process can be encrypted and protected. Only authorized participants—issuers, regulators, auditors—can access the relevant information, providing dual protection for trade secrets and investor privacy.

In the secondary market, the decentralized exchange on DUSK can also facilitate privacy-protected transactions. Both parties complete fully compliant transactions, but the specific details are securely hidden. This satisfies the transparency requirements of on-chain trading while maintaining the confidentiality that financial operations require.