

Bankless: Insufficient privacy protection? The way to upgrade the privacy function of stock tokens
Jul 15, 2025 pm 08:03 PMThe privacy dilemma of stock tokens can be solved through technical upgrades and supervision. The main problems include address association risks, transaction strategy leakage and compliance conflicts. The corresponding solutions are: 1. Use zero-knowledge proofs (such as zk-SNARKs) to verify transactions without disclosing details; 2. Use mixers to confuse transaction paths with the privacy pool and design an AML whitelist; 3. Build a second-tier privacy network to allow selective disclosure of data; 4. Develop compliance privacy token standards to embed programmable modules. At the same time, regulatory coordination is needed through selective disclosure and off-chain verification tools, and gradient privacy protection solutions will be implemented based on scenarios in the future.
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Ouyi OKX:
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The era of banking: the privacy dilemma of stock tokens and upgrade paths
With the popularization of blockchain technology, stock tokenization (RWA) has become an important direction for the integration of traditional finance and DeFi. However, insufficient privacy protection is becoming a key bottleneck restricting its development - although public on-chain transactions ensure transparency, they expose sensitive data such as user positions and trading strategies, and may even trigger regulatory arbitrage or malicious sniping. How to improve privacy without sacrificing compliance? The industry is exploring multi-dimensional solutions.
Privacy Pain Points: The Cost of Transparency
On-chain transaction records of stock tokens face triple risks:
Address association risk: On-chain analysis can track the association between personal money storage and real identity, threatening asset security;
Trading strategy leaks: Large-scale trading orders are easily identified in advance, causing market manipulation;
Compliance conflict: Some jurisdictions require local anonymization of financial data, which is inconsistent with the full disclosure characteristics of blockchain.
Technology upgrade path
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Zero Knowledge Proof (ZKP)
For example, Aztec and Zcash's zk-SNARKs technology can verify transaction validity without disclosing details, and is suitable for the settlement layer of tokenized stocks;
Challenge: Computational cost and throughput need to be balanced, and regulatory authorities need to recognize ZK's compliance.
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Mixer and Privacy Pool
Tornado Cash-like solutions can obfuscate transaction paths, but need to design a whitelisting mechanism that complies with anti-money laundering (AML);
New agreements such as Privacy Pools separate legal and suspicious transactions through "association sets", taking into account privacy and compliance.
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Layer 2 privacy network
Build a dedicated privacy layer based on OP Stack or ZK Rollup (such as StarkEx's "Volition" mode), allowing users to choose the data disclosure range;
For example, view permissions are only open to regulators, and the public only sees hash summary.
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Compliant Privacy Token Standard
Extend the ERC-20/721 standard and embed programmable privacy modules (such as SECP-approved "licensed anonymous transfer").
Regulatory coordination is key
Privacy upgrades need to be synchronized with the policy framework:
Selective disclosure: Prove compliance with the regulator through zero-knowledge proof without disclosing all data;
Off-chain verification: For example, Chainalysis develops compliance tools to score risks for anonymous transactions.
Future Outlook
The privacy protection of stock tokens is not "all or nothing", but a gradient solution based on scenarios - small-scale transactions can enable strong privacy, while large-scale flows in institutions require audits to leave traces. With the maturity of ZK hardware acceleration and cross-chain privacy protocols such as Silent Protocol, 2024 may usher in an explosion of privacy-enhanced RWA.
The above is the detailed content of Bankless: Insufficient privacy protection? The way to upgrade the privacy function of stock tokens. For more information, please follow other related articles on the PHP Chinese website!

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