As the market anticipates a $200 billion level of capital flow about to erupt, institutional investors face a dilemma: either reveal their identity information to undergo regulatory scrutiny or hide in privacy corners and give up the compliance passport.

But this choice is being broken.

A new technological approach is emerging—using Zero-Knowledge Proofs (ZKP) to protect investor privacy while also meeting international compliance standards like MiCA for KYC requirements. The Citadel protocol is doing exactly that, keeping the holder's identity information confidential while ensuring the verification process fully complies with EU regulatory frameworks.

This is not about evading regulation. On the contrary, it redefines the boundaries of privacy and compliance through cryptographic technology—allowing you to prove "I meet the requirements" without having to say "who I am." For institutional funds, this is like building a fortress before the liquidity tsunami of 2026, capable of defending against risks while safeguarding privacy.

The key is whether this solution can truly operate in real-world scenarios, which depends on specific application deployment. But from a technological perspective, the opposition between privacy and compliance is gradually being resolved.