A blockchain project has been exploring since 2018 how to make traditional financial institutions comfortable using blockchain technology. The pain points for financial institutions are clear: on one hand, they need to protect commercial data privacy; on the other hand, they must meet increasingly strict regulatory requirements. It seems contradictory, but this project has found a solution through technological innovation.

They have built a Layer 1 network specifically designed for the regulated financial industry. What is the core idea? To use zero-knowledge proof technology to achieve selective disclosure of transaction data—on-chain activities remain encrypted for ordinary users, while being fully transparent and auditable for regulators. In other words, it can protect business secrets while passing regulatory scrutiny.

This solution is particularly attractive for RWA (Real-World Asset Tokenization). To issue and trade traditional financial assets like stocks and bonds on-chain, the key is to solve legal compliance issues. By embedding compliance logic into the protocol’s core layer, it can not only automatically execute complex regulatory requirements but also significantly reduce clearing costs and settlement cycles—this has major implications for the digital transformation of global capital markets.

From a technical perspective, the modular architecture design and privacy compliance mechanisms of this project are gradually becoming a bridge connecting traditional finance and digital finance. As more institutional applications need to simultaneously meet business confidentiality and regulatory transparency, the value of such solutions becomes evident.