Speaking of security tokenization, many people focus on efficiency improvements but often overlook a more core issue: **how to balance privacy and compliance**.

DUSK's approach is worth breaking down. It has built a complete chain from issuance, trading to reporting, with the core logic being—on the premise of protecting privacy, achieving full on-chain transparency.

**In issuance**, the traditional model requires weeks of approval and paper processes. Moving to the blockchain simplifies this. The issuer deploys a smart contract with KYC/AML verification, qualified investors can subscribe with one click, and funds settle in seconds. Tedious manual reviews and document organization are basically eliminated, boosting efficiency by dozens of times.

**The trading process is even more interesting**. What do large investors fear most? Leakage of trading information, being sniped, or having positions front-run. Privacy trading supported by DUSK can hide prices and quantities, known only to both parties. For institutions, this confidentiality is more valuable than anything.

But there's a challenge—privacy and regulation are often at odds. How to solve this? DUSK's "auditable privacy" design provides an answer. All on-chain operations leave immutable records, and issuers or compliance parties can use zero-knowledge proofs to demonstrate to regulators that transactions are compliant, without revealing investors' personal information. In plain terms, it allows regulators to verify without accessing sensitive data.

The reason this architecture is attractive is because it addresses real problems. Traditional finance has high compliance costs and low efficiency, while the privacy needs of on-chain securities tokenization are strong. DUSK integrates both seemingly contradictory requirements.

What will the next-generation capital markets look like? Possibly following this logic—high efficiency, privacy, and auditability.