The big challenge currently facing blockchain is the tokenization of real-world assets. In simple terms, it means bringing traditional assets worth trillions onto the chain. But to truly make this happen, we must overcome a hurdle—compliance and infrastructure. Many public blockchains are eager to participate, but due to a lack of underlying capabilities, they end up as paper tigers. In contrast, Dusk has been preparing for this from the very beginning, and its technical architecture is designed with this goal in mind.

Tokenization sounds simple—just writing asset information onto the blockchain. But in reality, it’s much more complex. You need to handle how legal rights correspond on-chain, how ownership is legally transferred, and how profits are automatically distributed—all of which are no small feats. The core issue is that the entire process must comply with existing legal frameworks such as securities law and property law, avoiding pitfalls. This requires the underlying public chain to have three key capabilities: first, the ability to handle complex financial logic natively; second, the ability to enforce compliance rules strictly; third, the ability to protect participants’ business privacy. Dusk is making efforts in all three directions simultaneously.

Taking a practical example, suppose you want to tokenize a private equity fund on-chain. Under Dusk’s framework, the process is as follows: First, an integrated identity verification module conducts on-chain KYC for all investors, ensuring only qualified investors can participate, which guarantees legal compliance. Second, the token itself is not an ordinary fungible token; it functions like a smart security, encoding the terms of the shareholder agreement. For example, restrictions such as lock-up periods and pre-emptive rights are embedded, and the system can automatically enforce these, preventing investors from acting maliciously. Third, when the fund has profits to distribute, privacy computing comes into play. The specific amount each investor receives is hidden from others, and personal financial information is properly protected.

This design approach effectively creates a closed-loop of financial transaction logic on-chain. It’s no longer just about recording data on the chain; it’s about making blockchain a compliant, efficient, and privacy-preserving financial infrastructure. This is the true path for RWA tokenization.