Decentralized finance (DeFi) has demonstrated the advantages of programmable money, but much of its early development was based on speculation. For DeFi to grow and connect to real-world markets, it must meet the needs of institutions that manage large amounts of assets.
Privacy, regulatory compliance, and operational control are essential for institutional asset management. Public DeFi systems are not suitable for sensitive financial activities because transaction details are disclosed. Therefore, there is a gap between decentralized innovation and institutional participation.
The Dusk Foundation implements Privacy-first DeFi using Confidential Smart Contracts. Institutions can use DeFi strategies to manage tokenized assets and keep sensitive information confidential. At the same time, transactions can be verified and audited using cryptographic proofs.
