Recently, the blockchain community has been discussing an interesting phenomenon: traditional financial institutions are quietly changing their attitude towards Web3. No longer just observing, they are actually starting to test the waters. One of the driving forces behind this is the Dusk Foundation, a team quietly making moves in Europe.

Their logic is very clear—since regulation will not disappear, why not embed compliance directly into the code? Modular blockchain combined with compliance and privacy dual engines directly eliminate all psychological barriers for institutional entry.

The most straightforward example is DuskTrade. It is set to launch in 2026 and has already partnered with a licensed exchange in the Netherlands. This is not just a conceptual application but a real asset of 300 million euros preparing to go on-chain. Traditional financial treasures like real estate and private equity will be traded on-chain through three layers of certification: MTF, Broker, and ECSP. The popularity of the waiting list opened in January speaks volumes—global institutions are indeed rushing in. In simple terms, on-chain trading combined with regulatory endorsement—who can refuse this combination?

Developers also have good news. After the January mainnet upgrade, DuskEVM solved long-standing pain points with a clever architecture upgrade. By separating the settlement layer and execution layer, developers can continue to write code in familiar Solidity while automatically complying with European regulations like GDPR and MiCA. Testnet data speaks volumes: TPS exceeds 2000+, and the cost per transaction is 90% cheaper than Ethereum. This has attracted participants, including 12 banks, to come in and test.

Speaking of the most imaginative part, it’s privacy. The Hedger protocol uses a combination of zero-knowledge proofs and homomorphic encryption, allowing transaction parties’ identities and amounts to be encrypted, while simultaneously generating verifiable "audit credentials" for regulatory review. This is not simple privacy but a balance of "privacy + auditability." The alpha version is already online, and internal testing results from a European bank show a 40% improvement in anti-money laundering review efficiency, while user privacy remains completely untouched. This could be the optimal solution for future coexistence of compliance and privacy.

The entire timetable is very tight. In January, DuskEVM mainnet and DuskTrade candidate launch will proceed simultaneously—gradually opening up the imagination space for the DUSK token—covering from underlying infrastructure, to institutional-grade applications, to privacy solutions. A complete closed loop has already taken shape. Those who are keen to observe the evolution of the Web3 ecosystem should pay more attention to Dusk’s approach.