There’s a hard rule in securities compliance: MNPI—material non-public information must not be selectively disclosed. Under the EU MAR regulations, before any official announcement, issuers must not allow any specific persons to learn the terms of an issuance early.
There’s a direct positive contradiction between blockchain transparency and this rule.
You want to write the bond issuance terms onto the chain to enjoy on-chain atomic settlement and automatic compliance execution. But as soon as the terms are put on-chain, blockchain’s default transparency means anyone can read them at that moment. Before the official announcement, the terms have already become visible to the entire world— from the MAR perspective, that’s an uncontrollable release of information, and the violation occurs in that one second.
Most solutions for on-chain issuances are: keep sensitive information off-chain and store only hashes on-chain. But then you lose full on-chain auditability, and you don’t get atomic settlement. In practice, you can only choose one compliance requirement.
Dusk Network positions itself as a privacy L1 built for financial applications. With XSC confidential securities contracts, the issuance terms are written to the chain in encrypted form—on-chain records show “this issuance exists” (meeting audit requirements), but the content of the terms is encrypted and unreadable (meeting MNPI requirements). At the time of the official announcement, the decryption keys are released simultaneously, and everyone sees the same information at the same moment—there’s no selective disclosure.
For the first time, both on-chain transparency and MNPI compliance can be satisfied at the same time, without having to choose one over the other.
NPEX has used this mechanism to complete securities issuances totaling more than €200 million. AMLR Article 79 will take effect in mid-2027, and the regulatory framework is moving toward providing backing for auditable privacy. Hedger is currently in testnet; mainnet verification is the next step.
Have you done an on-chain securities issuance? How did you resolve the contradiction between MNPI compliance and on-chain transparency?
@Dusk XSC encrypted on-chain—on-chain transparency and MNPI compliance are both satisfied simultaneously for the first time.#dusk $DUSK $BTC $ETH @Dusk
There’s a direct positive contradiction between blockchain transparency and this rule.
You want to write the bond issuance terms onto the chain to enjoy on-chain atomic settlement and automatic compliance execution. But as soon as the terms are put on-chain, blockchain’s default transparency means anyone can read them at that moment. Before the official announcement, the terms have already become visible to the entire world— from the MAR perspective, that’s an uncontrollable release of information, and the violation occurs in that one second.
Most solutions for on-chain issuances are: keep sensitive information off-chain and store only hashes on-chain. But then you lose full on-chain auditability, and you don’t get atomic settlement. In practice, you can only choose one compliance requirement.
Dusk Network positions itself as a privacy L1 built for financial applications. With XSC confidential securities contracts, the issuance terms are written to the chain in encrypted form—on-chain records show “this issuance exists” (meeting audit requirements), but the content of the terms is encrypted and unreadable (meeting MNPI requirements). At the time of the official announcement, the decryption keys are released simultaneously, and everyone sees the same information at the same moment—there’s no selective disclosure.
For the first time, both on-chain transparency and MNPI compliance can be satisfied at the same time, without having to choose one over the other.
NPEX has used this mechanism to complete securities issuances totaling more than €200 million. AMLR Article 79 will take effect in mid-2027, and the regulatory framework is moving toward providing backing for auditable privacy. Hedger is currently in testnet; mainnet verification is the next step.
Have you done an on-chain securities issuance? How did you resolve the contradiction between MNPI compliance and on-chain transparency?
@Dusk XSC encrypted on-chain—on-chain transparency and MNPI compliance are both satisfied simultaneously for the first time.#dusk $DUSK $BTC $ETH @Dusk
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