I recently noticed an interesting phenomenon: many blockchain projects are touting revolutionary rhetoric, yet very few can actually land in real-world scenarios. Conversely, these types of projects have been quietly doing one thing — integrating privacy protection and regulatory compliance together.

Why is this direction worth paying attention to? Because it's not hype-driven, but directly addresses the practical needs of institutions and users.

Imagine institutions need to transact on-chain, issue tokenized securities or RWA assets, but don't want to expose their trading strategies or identity information on public blockchains — this is the core contradiction of compliant DeFi and tokenized securities tracks. Through privacy technologies like zero-knowledge proofs, asset settlement, interaction, and issuance can all happen on the blockchain while keeping data confidential. Confidential smart contracts further expand these possibilities.

The tokens of these networks aren't just functional in nature. They connect network security, economic incentives, and governance mechanisms, becoming the linchpin of the entire ecosystem.

The key now is that global regulatory frameworks are becoming progressively clearer. For financial institutions, compliant privacy infrastructure is shifting from "worth considering" to "must-have" — it's only a matter of time. These projects' current position is somewhat like standing on the eve of this inflection point.