Traditional financial compliance audits are like an endless unboxing process. Every cross-border transaction, every asset listing requires financial institutions to lay everything out for regulators to check one by one. This process is not only inefficient but also consumes a significant portion of the institution's profits annually, especially in anti-money laundering (AML) and customer due diligence (KYC).



By the second half of 2025, the large-scale on-chain registration of real-world assets (RWA) is a certainty, and this outdated compliance model can no longer keep up with the pace. Dusk Foundation is building a different path—using Zero-Knowledge Proofs (ZKP) technology to transform "expensive manual audits" into "cost-effective algorithmic verification."

Compliance is essentially about building trust. Under traditional methods, this trust requires stacking大量 documents and human audit costs. Dusk's innovation lies in redefining this process. Its Piecrust virtual machine creates an execution environment for financial institutions that both protects privacy and meets compliance requirements.

Although public blockchains like Ethereum are transparent, for banks holding sensitive positions, this transparency itself is a risk. Dusk achieves the so-called "blind compliance" mechanism through the Citadel protocol—allowing financial institutions to prove to regulators that their asset allocations comply with regulations such as the EU's MiCA without exposing transaction details.

In other words, institutions no longer need to send all data for manual review; instead, they can use cryptographic proofs to verify compliance. This significantly reduces back-end operational costs and compresses the compliance process from weekly to minutes. For investment banks and asset management firms handling cross-border asset transfers, this means real cost optimization and accelerated business operations.
RWA2,44%
DUSK-2,06%
ZKP-6,02%
ETH0,52%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
HashBanditvip
· 12h ago
ngl this ZKP angle actually slaps... back in my mining days we'd kill for this kind of privacy-preserving verification, would've saved me thousands on electricity audits alone. skeptical tho—compliance at lightspeed sounds too good, who's validating the validators?
Reply0
ColdWalletAnxietyvip
· 12h ago
Really? From weekly level down to minute level? If that were true, the banks would have already betrayed long ago and would still be stacking KYC there.
View OriginalReply0
MrDecodervip
· 12h ago
Blind compliance really has some merit; finally, someone has thought of using cryptography to solve this longstanding difficult problem.
View OriginalReply0
ZkSnarkervip
· 12h ago
well technically the whole "blind compliance" thing is just zkp doing what it was always supposed to do... still wild that traditional finance needed crypto to figure out you can prove something without showing your cards lol
Reply0
CoinBasedThinkingvip
· 12h ago
Blind compliance sounds good, but can it really be trusted? It still seems to depend on how Dusk implements it later on.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)