If the blockchain wants to truly support institutional funds, it must address a core contradiction: protecting transaction privacy while meeting regulatory scrutiny. Dusk's approach is straightforward—set privacy protection as the default configuration while reserving verification channels for auditors.

How is this technically achieved? It relies on zero-knowledge proofs (ZK) and selective disclosure mechanisms. In simple terms: transaction details are kept confidential from the entire market, but auditors can verify the authenticity of transactions through validation credentials. This solution protects participants' commercial secrets without leaving loopholes for regulators.

At the architectural level, a layered model is adopted. The bottom layer is a settlement layer designed specifically for high-speed clearing, responsible for ensuring transaction finality; the upper layer is an EVM-compatible application environment, allowing Solidity developers to deploy applications quickly without relearning. Coupled with privacy infrastructure like Hedger, integration with Chainlink for real-world asset prices and cross-chain data, and deep cooperation with licensed institutions, the entire tokenized securities chain becomes complete.

The current key is implementation. Testnet tools and the DuskEVM demo environment are not just theoretical—they are built to meet the needs of real assets and real trading counterparts. Once STOX (also called DuskTrade) is launched into production, with custodians supporting euro-pegged channels, on-chain trading volume will truly increase, and the practical value of DUSK will be unleashed.

For developers and institutional tech teams, the current playbook is clear: actively experiment on the testnet, design application scenarios around privacy and auditability features, and prepare for the wave of future compliance requirements. This is not short-term hype but laying the groundwork for the next phase of financial infrastructure.