Once the bond market crashes, where do institutions go? A new answer has quietly spread in the community recently—DUSK.

When it comes to privacy coins, most people think of those completely anonymous varieties, but here’s the problem: institutions simply dare not touch them. Fully private transactions mean they can’t pass AML checks, and the legal risks are too high. DUSK is different; it takes another approach—"compliant privacy." Transaction information is not publicly disclosed, but the internal architecture complies with anti-money laundering and other regulatory requirements. This gives institutions a legitimate reason to use it without worrying about regulatory crackdowns.

Why are institutions interested in this now? Citibank recently provided an answer. The bond market may face a risk gap of $130 billion, and this is just the beginning. Interest rate volatility is becoming more intense. When traditional markets fluctuate, institutions need assets that are both flexible and leave no trace. DUSK happens to fill this need—it quietly exists most of the time, but when the situation turns bad, it becomes a powerful tool for asset transfer.

In the long term, an ecosystem based on DUSK could become increasingly rich. For example, DUSK-denominated bonds, derivative instruments, and even lending protocols collateralized with DUSK. These products leverage blockchain’s high efficiency while providing privacy protection for institutions. When traditional financial products fail, these alternatives become especially attractive.

Of course, it’s still too early to say DUSK will replace government bonds or gold. Its liquidity isn’t sufficient, and its scale isn’t large enough yet. But that’s precisely where its potential lies. As more institutions start allocating digital assets, DUSK’s privacy advantages will only become more popular. It won’t change everything overnight, but it will gradually nibble away at high-end demands that are particularly sensitive to privacy.