Dusk is a Layer 1 blockchain built for finance where privacy and rules both matter. It began in 2018 with a simple idea: markets cannot run in a glass box, but they also cannot run in total darkness. So Dusk tries to keep sensitive details private by default, while still letting the right parties prove compliance and audit activity when needed.
This matters most with tokenized real assets. A token that represents a share, a fund unit, or a bond comes with access restrictions, reporting duties, and confidentiality needs. Europe even created a “DLT Pilot Regime” so market infrastructures can test DLT-based trading and settlement, and ESMA describes categories like DLT multilateral trading facilities and DLT trading-and-settlement systems.
In 2025, Dusk made its direction clearer. On June 18, 2025 it described a modular three-layer stack: DuskDS for consensus, data availability, and settlement; DuskEVM as an EVM-equivalent execution layer for familiar smart contract tooling; and a future privacy-focused layer called DuskVM. The goal is to lower integration friction without losing the regulated-privacy focus.
On June 24, 2025 Dusk introduced Hedger, a privacy engine for DuskEVM that combines homomorphic encryption with zero-knowledge proofs. In plain terms, it aims to let apps run confidential transactions while still producing verifiable proofs, so privacy does not mean “trust me,” and compliance does not mean “expose everything.”
Tokenomics are meant to fund long-term security. Dusk documentation states an initial supply of 500,000,000 DUSK, plus another 500,000,000 emitted over 36 years for staking rewards, for a maximum supply of 1,000,000,000. This supports validator incentives, but it also means the ecosystem needs real usage and fees so emissions do not become constant pressure.
The ecosystem narrative is tilted toward regulated rails. In March 2024, NPEX said it was preparing an EU DLT Pilot Regime application with Dusk. In February 2025, Quantoz Payments announced EURQ with NPEX and Dusk as a digital euro electronic money token aimed at regulated finance operating at scale on Dusk.
Dusk has also focused on standards and connectivity. On November 13, 2025 it announced a partnership with Chainlink, describing CCIP for cross-chain interoperability and DataLink plus Data Streams for verified exchange data and low-latency price updates.
If you zoom out, the roadmap feels like a straight line: make it easy to build (EVM), make it safe to use in real markets (privacy plus proofs), then plug in the boring essentials like payments and market data. The “multi-layer” approach is basically Dusk admitting it wants to be infrastructure first, not a flashy app chain, and it wants to meet institutions where they already are.
The main challenges are real-world speed and system complexity. Regulated adoption takes time, the pilot regime uptake has been limited so far, and multi-layer designs plus bridges add security and UX risk. On top of that, Dusk must keep the privacy-versus-compliance balance, and it must grow utility faster than emissions feel heavy. If Dusk succeeds, it may feel quiet: settlement that works, payments that clear, and privacy that does not break trust.