2026-01-06 16:21:32

Why has the trillion-dollar capital in traditional finance failed to enter the DeFi ecosystem on a large scale? The key issue lies here — no financial institution is willing to directly "expose" their clients' ledgers and transaction data on the public blockchain.

This deadlock is gradually being broken. Emerging infrastructure solutions are attempting to bridge the final mile between TradFi and DeFi, with the core logic of creating a dedicated privacy compliance layer tailored for traditional financial institutions.

This is not just another new chain, but a redefinition of on-chain financial access permissions. The current global financial system remains highly fragmented: traditional banking systems, capital markets, and crypto exchanges operate independently, resulting in serious data silos. The new solutions aim to enable institutional funds to enjoy the convenience of transparent on-chain settlement through privacy protocols and compliance frameworks, while also protecting sensitive account information — achieving true financial interconnectivity under regulatory requirements.

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MEVHunterNoLoss

· 18h ago

It's the old tune of the privacy layer again. It sounds great, but can it really bring traditional finance in? What these guys care about is regulatory certainty, not technical promises. No matter how beautifully the compliance framework is written, if something goes wrong, someone still has to take the blame.

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AlwaysMissingTops

· 01-09 09:35

This is the real deal. Finally, someone has explained the problem thoroughly. --- The privacy layer should have appeared long ago; otherwise, institutions won't care. --- Wait, can this logic truly satisfy regulators, or is it just another bunch of hollow promises? --- No wonder traditional finance has always looked down on blockchain—if all data is transparent, who would dare to come? --- Talking about breaking data silos sounds nice, but can it really be achieved technically? --- The key is who will build this privacy layer and who will set the rules. --- I just want to know if this can truly attract big funds or if it's just empty talk. --- Brilliant, a new intermediary layer has emerged. --- So in the end, it's still a game of trade-offs. Transparency and privacy can't be fully achieved at the same time. --- This is what DeFi truly needs—stop with all those flashy things.

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OffchainOracle

· 01-08 01:43

I've heard the story of this privacy compliance layer several times, and every time they say they want to bridge the last mile. But what happens? It's still the same old thing. The real issue isn't technical at all; banks simply don't want to move. For this plan to truly be implemented, regulatory authorities need to be involved as well, which makes the difficulty level skyrocket.

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¯\_(ツ)_/¯

· 01-06 16:51

That's right, privacy issues are indeed the main concern. Institutions are afraid of data leaks, and the traditional banking logic doesn't work on the chain. However, are these privacy layer solutions really reliable? It still feels a bit uncertain.

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WalletDetective

· 01-06 16:44

I've always been a bit pessimistic about traditional finance... Privacy layers sound good, but can they really convince old bankers to put their money in?

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ThreeHornBlasts

· 01-06 16:40

It sounds great, but this has already been hyped up by someone before... privacy layer, compliance layer, at the end of the day, it's still about making compromises. Do the traditional finance folks really trust things on the chain?

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ForkTrooper

· 01-06 16:39

Basically, it's a privacy issue that’s holding things back; I understand why institutions are hesitant to go completely裸奔.

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