Issuing ERC-20 tokens in the crypto space has long been commonplace, with such low barriers to entry that it's almost trivial. The real challenge lies elsewhere—can you design a token that meets Wall Street's requirements while passing regulatory scrutiny? That is the critical line between life and death.

The Dusk Foundation's XSC standard is at this level. It’s not just a simple upgrade to token standards but directly embeds legal rules into the smart contract.

Imagine traditional transfers: money moves from account A to account B, regardless of whether it's sent to a terrorist or an elderly grandmother—the entire system simply doesn't care. But the XSC approach is entirely different—each transaction automatically undergoes compliance checks at the most fundamental level of the blockchain.

Has the recipient completed KYC? Has the transfer amount triggered anti-money laundering thresholds? Does this transaction comply with local securities laws? If not, the transaction is immediately halted. The entire process is fully automated on-chain, while also protecting privacy.

This move is truly powerful. What used to be cumbersome manual review processes are now executed automatically through code logic. For companies looking to issue stocks, bonds, or real estate tokens, XSC is like a lifeline. It can significantly reduce compliance costs while completely eliminating legal risks.

Let’s also look at the RWA (Real World Asset) track. Most projects are still working on the basics of asset tokenization, but Dusk has already integrated "regulatory layers" into the protocol design. This is truly addressing the core issue.

Looking ahead, regulations will only become stricter. An uncompliant DeFi ecosystem will inevitably decline, and RegDeFi based on standards like XSC will become the new mainstream, controlling markets worth trillions. By then, the value of this standard will be self-evident.