Is privacy blocking RWA? Dusk opens the door for institutions
Putting RWA assets on-chain sounds appealing; bonds and real estate can be tokenized and sold easily, settlement times shortened from days to seconds. But why are institutions and high-net-worth individuals still hesitant? The core issue lies in privacy! Who wants to expose their holdings, transfers, and beneficiary information on a public ledger, giving opponents and hackers a free hand?
Blockchain is inherently transparent, which is a benefit for retail investors but a deadly trap for institutions. Many RWA projects in the past have only remained in the demonstration phase; although technology and compliance were sorted out, the privacy issue remained unresolved. Dusk, however, does not just pay lip service; it makes privacy a core aspect from the ground up. After the mainnet activation in 2026, contracts will come with zero-knowledge proofs, hiding all transaction details while still verifying legality and compliance. If regulators want to audit, they will find evidence, but outsiders will see nothing.
It combines privacy with self-custody, allowing assets to be managed independently, transfers to happen instantly, and compliance to be automatic, reducing costs and increasing efficiency compared to traditional custodial banks. The collaboration with the Dutch NPEX exchange is more tangible, targeting 200-300 million euros worth of small and medium-sized enterprise securities on-chain, addressing issues of poor liquidity and information asymmetry. In the current environment of MiCA regulation, this default privacy + auditability model is key for institutions to enter the space and for RWA to be realized! #dusk $DUSK @Dusk
