Regulators have never feared privacy; what they fear is un-auditable black box systems. Many privacy coins have been directly targeted by regulators due to their full anonymity, with too many examples of delisting and freezing.
Dusk's Hedger module uses zero-knowledge proofs + homomorphic encryption to keep transactions confidential by default, with details such as amounts and intentions encrypted. This directly reduces the front-running risk that institutions fear the most. However, the key is 'selective disclosure': when audits, taxes, or compliance checks are needed, only a small part of the proof is opened to show 'this transaction is legal', while other privacy remains locked. This is not simple encryption, but controllable and verifiable privacy.
I personally tested the Alpha version, and generating proof for large transfers only takes a few seconds. The browser operation is super smooth. In the RWA scenario, institutions issuing bonds need to protect the order book while complying with MiCA regulations, and Hedger perfectly balances this.
Compared to other projects that either scare away institutions with full transparency or are suppressed due to complete opacity, Dusk's design makes me feel that it truly understands finance. With RWA set to be implemented in 2026, this will be the biggest moat, and I will continue to hold heavily waiting for institutional funds to come in.