How privacy and compliance tools reduce friction for institutional asset issuance?
Tokenizing real-world assets has long promised efficiency, but adoption remains slow. Institutions struggle to bring equities, bonds, or funds on-chain because privacy, compliance, and settlement rules conflict with public blockchain norms.
The challenge stems from regulatory uncertainty and infrastructure gaps. Traditional blockchains either lack privacy primitives or fail to satisfy KYC/AML standards, leaving tokenized assets stuck in pilot phases. Without trusted rails, few institutional actors venture into on-chain markets.
Dusk addresses this with Zedger and STOX, a privacy-preserving tokenization framework integrated with compliant settlement protocols. Partnering with licensed entities like NPEX, Dusk provides secure custody, on-chain issuance, and EU MiCA-aligned workflows. Tokenized securities can be issued and settled directly on DuskDS, removing intermediaries while preserving regulatory transparency.
The outcome is clear: real-world assets can now operate on-chain without exposing sensitive data or violating compliance standards. Builders, investors, and institutions gain confidence to experiment, pilot, and scale asset issuance, while the ecosystem accumulates real liquidity and practical use cases.
Dusk’s approach demonstrates that tokenization’s promise is not just technical — it requires governance-aligned infrastructure to bridge real markets with DeFi efficiently.