For over a decade, blockchain technology has developed rapidly, but traditional financial institutions—banks, funds, asset management companies—still face many practical hurdles when moving real assets like stocks, bonds, and real estate onto the chain. The benefits of going on-chain are clear: lower costs, faster transactions, and higher participation from global investors. So where are the problems?

First is the dilemma of information transparency. Transaction details are fully exposed on the blockchain, which means competitors or speculators can sniff out your moves in advance, front-run or short-sell, and business secrets are laid bare. Second is efficiency and cost. Currently, settlement still takes several days, involving multiple intermediaries, each charging fees, so investors end up losing a big chunk by the time they receive their funds. The last and most painful issue is compliance. Regulations are strict, but it can't be completely anonymous like some purely anonymous tools, or else it risks being blacklisted by exchanges, and there are anti-money laundering and tax reporting concerns.

This is why some platforms are exploring a new approach: protecting transaction privacy while meeting regulatory requirements. Simply put, it's "conditional privacy." Your amounts and holdings are like stored in a locked safe—ordinary users can't see the contents, transactions proceed as usual, and the system can verify legality. When regulators need to inspect, you voluntarily unlock it for them to see the details; daily transactions remain fully confidential. This way, large orders managed by fund managers are protected from front-running, and compliance risks are thoroughly avoided.

An actual scenario: a certain asset management company wants to issue bond tokens. The old method involves running through banks and clearinghouses, taking days for settlement and incurring hefty fees. A different approach is to issue bonds directly on the chain; after the buyer transfers funds, the transaction is completed in seconds, drastically reducing costs. Transaction records are transparent and auditable, but holdings and amounts are encrypted to protect privacy, satisfying institutional privacy needs while complying with global anti-money laundering standards. When done well, this balance makes the integration of traditional finance and blockchain no longer just theoretical.