Institutions say they embrace Web3, but when it comes to asset onboarding, they start to hesitate—basically fearing that data transparency might be too high. This pain point has become especially prominent in the RWA (Real-World Asset) track in recent years, as institutional clients dealing with large assets have strict requirements for privacy protection and regulatory compliance.

Now, there's a promising approach worth considering: combining ZK (Zero-Knowledge proofs) and homomorphic encryption to achieve "programmable compliance" on-chain. What are the benefits of this? Data remains encrypted throughout the process, regulators can verify as needed, institutional privacy is protected, and compliance bottom lines are maintained. It sounds complex, but in reality, it’s like giving institutions a reassuring guarantee.

The Dutch stock exchange NPEX recently chose this path, demonstrating that this solution is practical and feasible. With the mainnet already launched, developers can directly use Solidity to build privacy-preserving applications, and cross-chain verification is supported by oracles like Chainlink to ensure security.

From Gas fees to ecosystem governance, these factors directly impact long-term value. The RWA market is on the verge of explosion, and the demand for privacy and compliance infrastructure will only grow stronger. Solutions to these hard requirements often accumulate significant ecosystem momentum.