Financial institutions cannot operate on fully transparent blockchains. Every public transaction exposes sensitive information: positions, allocation strategies, counterparties, and volumes. In a competitive environment, revealing this data is equivalent to handing an advantage to competitors.
On the other hand, fully anonymous blockchains create a different but equally serious issue. They attract regulatory scrutiny, complicate compliance, and often lead to restrictions or exclusion from traditional financial rails. For institutional players, neither extreme is viable at scale.
This is exactly the problem @Dusk Network aims to solve with a key concept: auditable privacy. The goal is not to hide transactions from everyone, but to precisely control who can see what, and under which legal conditions.
Using zero-knowledge proofs (ZK-proofs), transactions remain private by default. Amounts, counterparties, and transfers are not publicly exposed on the blockchain. However, when legally required, regulators can access the necessary information to verify compliance.
This hybrid model unlocks real institutional adoption. It allows banks, funds, and market infrastructures to benefit from blockchain efficiency without compromising regulatory requirements.
#dusk is not just a theoretical vision. The network is already being used to tokenize more than €300 million in real-world securities, in partnership with NPEX, a licensed Dutch exchange. This proves that auditable privacy is not an experimental idea, but a production-ready infrastructure.
Privacy is no longer just a retail feature. It is becoming a foundational layer for TradFi’s migration on-chain.
