#dusk $DUSK @Dusk _Foundation
A lot of what makes Dusk interesting for regulated finance is not actually the blockchain.
Its the regulatory path around it.
I keep seeing chains judged mainly on throughput privacy finality and all the usual tech metrics. But for regulated securitie theres another question that comes first
Can you legally run the market this way in the first place?
Thats where the EUs DLT Pilot Regime gets interesting.
Its basically a controlled framework for testing DLT based models for recording trading and settling certain financial instruments under regulatory supervision and with the usual investor protection and market integrity requirements still in place.
That matters because putting a security on a blockchain and making that blockchain system the legally recognised market infrastructure are two very different things.
The licence terminology is where this gets more concrete.
21X already has the DLT TSS licence which allows it to combine trading and settlement functions under the EU pilot framework. Dusk and NPEX meanwhile have been working toward their own DLT TSS route for native on chain issuance.
And thats an important distinction: the framework is an enabler but getting the actual regulatory permissions is still a separate process.
Its also why I would not treat the Pilot Regime as the finish line.
Its a pilot. There are limits conditions and a review process and the EU is already looking at how the framework could evolve into something more permanent and flexible.
So maybe the interesting bottleneck now is not whether the legal door exists.
Is it getting more market infrastructures licensed or convincing actual issuers that moving securities on chain is worth the operational change?
@Dusk_Foundation
#dusk $APR $BTW
A lot of what makes Dusk interesting for regulated finance is not actually the blockchain.
Its the regulatory path around it.
I keep seeing chains judged mainly on throughput privacy finality and all the usual tech metrics. But for regulated securitie theres another question that comes first
Can you legally run the market this way in the first place?
Thats where the EUs DLT Pilot Regime gets interesting.
Its basically a controlled framework for testing DLT based models for recording trading and settling certain financial instruments under regulatory supervision and with the usual investor protection and market integrity requirements still in place.
That matters because putting a security on a blockchain and making that blockchain system the legally recognised market infrastructure are two very different things.
The licence terminology is where this gets more concrete.
21X already has the DLT TSS licence which allows it to combine trading and settlement functions under the EU pilot framework. Dusk and NPEX meanwhile have been working toward their own DLT TSS route for native on chain issuance.
And thats an important distinction: the framework is an enabler but getting the actual regulatory permissions is still a separate process.
Its also why I would not treat the Pilot Regime as the finish line.
Its a pilot. There are limits conditions and a review process and the EU is already looking at how the framework could evolve into something more permanent and flexible.
So maybe the interesting bottleneck now is not whether the legal door exists.
Is it getting more market infrastructures licensed or convincing actual issuers that moving securities on chain is worth the operational change?
@Dusk_Foundation
#dusk $APR $BTW