Dusk Network is revolutionizing how the financial world might work on-chain by incorporating financial compliance directly into the Dusk Network, thereby providing a harmonious, privacy-focused, and legally composable context for the operation of tokenized assets. Their partnership with the NPEX gives Dusk the necessary financial licenses, including MTF, BROKER, ECSP, as well as the forthcoming DLT-TSS, to conduct regulated operations throughout the life cycle of the asset. Dusk Network gives institutions the ability to facilitate the operation of tokenized financial securities, financial applications, as well as decentralized systems, all within a single underpinning by the Dusk Network token, the DUSK.
What makes the strength of the Dusk offering is its protocol-level compliance. In contrast to other networks where the compliance with the rules is only handled through the application level that in some cases is siloed. The compliance is woven directly into the blockchain infrastructure. As a result, all the transactions and issuance will necessarily be compliant with the law. This will enable the enterprise to use the blockchain technology without affecting their privacy and control over their operation and still be compliant with the rules of the jurisdictions that the enterprise operates in.
$DUSK plays a crucial role within this space, as it drives the execution of smart contracts, the verification of transactions, as well as securing the whole network. With DUSK fully integrated within each of these functioning levels within the institution, deterministic execution of asset transfers, approvals, as well as automated checks regarding compliance, become possible. Capital flow within various sectors or investment portfolios becomes rapid, as corporate actions become seamless, and audit trails are generated automatically.
The MTF and Broker licenses passed down from NPEX let Dusk establish a regulated secondary market and gain access to assets such as MMFs, bonds, and treasuries. The ECSP license will facilitate retail investment products’ distribution across the EU, thus increasing Dusk’s market for tokenized financial assets. On a separate note, the upcoming DLT-TSS license will soon permit on-chain issuance and tokenization of regulated assets. Individually and collectively, these licenses establish an end-to-end process for institutions for regulated financial activity such as issuance and investment through trading and settlements.
Perhaps the most concrete positive of such a framework is the use of licensed decentralized apps, and the option of running them on a collaborative legal and technological basis. Organizations get the opportunity to develop apps using the licensed resources, all without the need for a new KYC onboarding process. The inter-operability of apps gets eased, allowing institutions to develop a multifaceted DeFi application, fully confined within the same regulatory scope.
With the incorporation of the NPEX dApp, such a vision comes to fruition. This development has been created in collaboration with Dusk and financial infrastructure developers. This dApp comes with a fully-regulated platform that works both in terms of front-end clients as well as back-end solutions. There is direct access to tokenized securities, along with a fully-regulated infrastructure that allows developers to create more solutions. This works on DuskEVM with seamless support with development tools.
With compliance at the protocol level, private smart contracts, and automation enabled by DUSK, Dusk Network enables an entire cycle of tokenized finance for institutions. Issuance, allocation, trading, and settlement of funds become an uninterrupted process, with adherence to strict regulatory norms. This brings about an era of reliability, transparency, and efficiency to the DeFi sector and the marketplace for tokenized securities.
For the first time, enterprises can now conduct their operations in the world of blockchain with privacy, compliance, and composability simultaneously and by design. Through the use and integration with $DUSK nd Dusk's regulatory compliance solution, institutions can now use their real-world assets in the world of blockchains with certainty, knowing that capital efficiency, compliance, and minimizing operational risk are accomplished. Dusk is more than creating a world for tokenized finance it is creating the structure for real-world, regulatory-compliant finance to flourish.
