In the tug-of-war between regulation and innovation, Europe has emerged with a new approach. Dusk Network, with its "privacy-first compliant financial infrastructure" angle, attempts to solve the deadlock of on-chain financial assets using zero-knowledge proof technology — satisfying both the transparency and audit requirements of MiCA regulations and protecting traders' privacy. This technical solution, called Phoenix, employs zk-SNARKs algorithms, which theoretically allow regulators to see transaction compliance while investors remain anonymous.

From a technical perspective, Dusk Network achieves a block time of 1.2 seconds using a hybrid consensus mechanism (PoS + dBFT), and the cost of a single transaction is reduced to 0.003 euros, which is significant for cost-sensitive institutional applications. The recent V4 upgrade introduced the Dusk Vault custody solution, specifically designed for traditional financial institutions — enabling real-world assets like stocks and bonds to be directly on-chain.

Partnerships have already been established. The largest Dutch broker NPEX adopted this solution and completed a €200 million private equity tokenization, becoming Europe's first regulated cross-chain asset transfer. The team also obtained a digital asset service provider license from the Luxembourg Financial Supervisory Authority (CSSF).

On the token side, DUSK's circulating market cap has surpassed $870 million, with a 42% turnover rate over 30 days. The team designed an "inflation destruction balancing mechanism" to manage token supply — a detail reflecting their consideration for long-term ecosystem stability.