The RWA chain reform track is experiencing a subtle dilemma. Many projects, in order to meet regulatory compliance standards, are forced to make compromises in product design—cumbersome review processes, complex verification steps—ultimately putting pressure on institutional operational teams. Efficiency has become the bottleneck.

However, some projects are redefining this issue with a different approach. A leading RWA solution that started with Layer1 and has been deeply involved for years has refused to accept the dichotomy of "compliance versus user experience" since 2018. Their core idea is: compliance verification doesn't have to be a front-end burden; it can be fully embedded into the backend architecture.

How is this achieved? Technologically, they use the PLONK zero-knowledge proof algorithm to handle privacy encryption and compliance traceability—key is embedding these logics into the system's underlying layer, making the process seamless for staff. Modular architecture ensures seamless integration with existing institutional systems, eliminating the need to switch interfaces or relearn processes, allowing on-chain capabilities to be integrated into daily workflows. At the same time, it can precisely align with mainstream regulatory frameworks like MiCA.

This solution has been validated on a securities trading project worth over 200 million euros. The opposing team was already accustomed to traditional operational rhythms, and the project did not require them to change any habits. Instead, through technical optimizations, on-chain compliance verification runs silently in the background. The pace of trading, reconciliation, and reporting remains unchanged, and the processing efficiency has increased by 30%.

Behind this lies a thought-provoking logic: compliance should not be a shackle on institutions but rather their confidence. Many RWA projects make a common mistake—treating compliance as an additional requirement, while neglecting that user experience is the true factor that determines success or failure. With a well-designed technical solution, both can coexist harmoniously. This balancing ability not only earns institutional trust but also lays a solid foundation for the large-scale promotion of RWA.