At the beginning of 2026, the privacy public chain sector reaches a critical milestone. Projects represented by Dusk Network are exploring a new approach: utilizing two major cryptographic tools—zero-knowledge proofs and homomorphic encryption—to help institutions issue, trade, and settle assets on-chain, protecting privacy while maintaining regulatory transparency.

Why is this solution worth paying attention to? The core lies in addressing two major pain points of traditional blockchains: fully transparent transaction data discourages institutional use, and it cannot meet AML and identity verification compliance requirements. Hedger Alpha has already gone live, and the DuskEVM mainnet is expected to launch in the second week of this month. More specifically, the platform is about to collaborate with licensed exchanges like NPEX to tokenize over 300 million euros worth of securities—this includes stocks, bonds, and even private equity fund shares.

Imagine this scenario: large institutions complete KYC/AML verification through zero-knowledge proofs, while their identity information remains completely hidden from other on-chain participants; during transactions, the amounts and counterparty information are encrypted and concealed, yet regulators can still verify the transaction's authenticity and compliance through a key. This is no longer a binary dilemma of privacy versus regulation but a technical route that achieves both.

Against the backdrop of the full implementation of the EU’s MiCA (Markets in Crypto-Assets Regulation), such compliant privacy solutions are becoming increasingly scarce. If DuskTrade truly manages to bring 300 million euros of assets on-chain for trading, it will be a significant case of traditional financial assets entering the on-chain world—"blockchain in compliance attire" may no longer be just a dream.