Under the wave of RegDeFi, a new batch of Layer 1 blockchains is beginning to redefine privacy protection standards in the financial market. Among them, one protocol uses zero-knowledge proof technology as its core engine to build a privacy-by-default architecture—sounds very technical, but the actual application scenarios are quite interesting.

Take the European Stock Exchange as an example. They want to tokenize 30 billion euros worth of securities on-chain, using native tokens to pay gas fees, enabling seamless transfer and custody. Traditional financial systems are hindered by liquidity bottlenecks and complex intermediary steps, but this solution achieves end-to-end encryption, meeting KYC/AML compliance requirements while also defending against quantum attack threats. After transaction batches are compressed via ZK-rollups, throughput can reach several thousand transactions per second, significantly improving efficiency.

Compared to conventional DeFi projects, these protocols' consensus mechanisms combine Proof-of-Stake with privacy-enhancing features, reducing single point of failure risks from an architectural perspective—this is especially important for institutional clients. Economically, native tokens incentivize node operators through staking to maintain the network, with inflation rates strictly controlled within 2%-5%, dynamically adjusted based on network utilization.

Ultimately, this solution is driving the global financial system from centralized to a privacy-protected, decentralized framework, becoming a vital infrastructure for RWA tokenization.