synopsis

Dusk urges a shift from surface-level tokenization to full native issuance, aiming to genuinely modernize capital markets.

Tokenized real-world assets (RWAs) have soared in popularity, promising modernized finance through digital wrappers. Yet Dusk argues that tokenization alone just slaps a digital label onto existing off-chain systems, often leaving the same inefficiencies intact. 

True financial transformation, according to Dusk, means going deeper: enabling native issuance, not mere tokenization.

With tokenization, an off-chain asset is replicated on-chain, but the real mechanics remain under legacy control. Native issuance, however, creates financial instruments fully on the blockchain from day one, with compliance, trading rules, and settlement logic baked in at the protocol level. 

It’s a tall order - one requiring advanced cryptography, robust standards like MiFID II and MiCA, and direct alignment with regulated entities. Dusk has taken up that challenge, designing a platform where privacy and compliance coexist.

Why bother? 

Because T+2 settlement cycles, bloated fees, and disjointed databases are still the norm in traditional finance. Even a token wrapper doesn’t fix the slow settlement or off-chain paperwork. In contrast, Dusk’s approach promises T+0 settlement, integrated KYC, and unstoppable 24/7 trading, all while meeting strict EU legal frameworks. 

Ultimately, Dusk’s position is that “tokenization alone isn’t enough.” Real improvements demand flipping the script: create assets natively on-chain so every compliance requirement, transaction, and corporate action is coded from the start. 

If done right, entire markets can reduce friction, cut costs, and open up global liquidity - transforming capital markets instead of just dressing them up. 

As interest in RWAs grows, the difference between simple token wrapping and regulated, natively issued securities will matter more than ever. Dusk is betting big on that distinction.

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