There is a common topic in the DeFi community: which is more important, privacy or transparency? But since 2018, Dusk Network hasn't been debating this issue — they've chosen a more challenging path, integrating privacy protection and regulatory compliance directly at the Layer-1 level.

How does their technical solution work? Zero-knowledge proofs combined with homomorphic encryption hide transaction details, sender, and receiver, yet regulators can still audit when needed. This "both... and..." approach sounds ambitious, but technically it is feasible.

Their specific product lineup is as follows: DuskEVM launched on mainnet in January this year, allowing Solidity developers to write contracts just like on Ethereum, settled directly on Dusk's Layer-1, with low gas fees, fast speeds, and strong privacy. The already launched Hedger Alpha is a privacy trading engine designed for institutions, supporting privacy order books and dark pools. The most notable project is DuskTrade, which partners with the licensed Dutch exchange NPEX, planning to launch a compliant RWA trading platform, with the first phase tokenizing over €300 million in securities.

Why will this approach be especially popular in 2026? First, regulatory attitude. Many privacy coins are considered gray areas by regulators, but Dusk has designed compliant audit channels from the start, compatible with global frameworks like MiCA and SEC. Second, market trends. By 2026, tokenization of traditional financial assets will be a major trend, and the demand for privacy + compliance will become increasingly real. Institutional investors need infrastructure that can protect strategic privacy while allowing for audits.

This is not an idealistic concept; real products are already running. From technology to ecosystem to regulatory integration, this is the true path that "privacy coins" should follow.