When it comes to blockchain, what is the first thing everyone thinks of? Absolute transparency. But in the financial world, this is often a double-edged sword.

Can you imagine—every bond transaction you make, every equity holding you have, being publicly available on the entire network in real time? In such a scenario, market manipulation and front-end trading could become rampant. That’s why many traditional financial institutions are still hesitant about whether to put their data on the chain.

Some projects are starting to think about this issue from a different perspective. The core idea is: complete transparency for regulators, while protecting privacy for ordinary users. It may sound contradictory, but it is technically feasible—using advanced privacy technologies to verify and execute transactions in encrypted form. Regulators hold the keys to access the full data, while ordinary participants cannot peek into others’ business activities.

This is not about shielding illegal activities, but about protecting legitimate trade secrets and trading strategies. This is precisely the prerequisite for large institutions to participate.

This approach can also be seen at the strategic level. For example, in deep cooperation with the EU DLT pilot regulatory framework, issuing a regulated Euro stablecoin EURQ—these are innovations within the rules. The goal is clear: to become a trusted extension of the traditional financial system, not an adversary.

Once this mechanism is operational, scenarios like bulk commodity trade financing and cross-border corporate fund management, which previously couldn’t be on-chain due to privacy concerns, will finally have technical solutions. This could be the key turning point for blockchain to integrate into mainstream finance.