Asset tokenization is said to be able to unlock a trillion-dollar market, but the vast majority of projects are stuck at the stage of "concept hype." Dusk is different — with an on-chain asset scale of $300 million, it has become a truly capable player in this space. The key behind this is actually solving the three most concerning issues for traditional financial institutions: how to verify asset rights, how to protect funds, and how to ensure transparent regulation.

**The hurdle of asset rights verification**

The first bottleneck in asset tokenization is here. The relationship between tokens issued on the blockchain and offline assets often lacks authoritative backing, which can easily lead to schemes like "multiple pledges for one asset" or "fictitious assets." How to break through? Dusk's approach is to implement a dual rights confirmation mechanism of "custodian institution + smart contract." They work closely with third-party custodians certified by the EU, consolidating ownership certificates of offline assets into a compliance database. The on-chain tokens are only responsible for recording and transferring — each token strictly corresponds to a specific share of an offline asset.

What’s even smarter is this: smart contracts automatically synchronize real-time data updates from the custodian (asset valuation, rental income, etc.), which are fed on-chain via oracles, achieving "rights confirmation at the moment of token issuance." For example, in a real estate token project, the tokens purchased by investors directly map to the property rights share of a building. The rent flow publicly disclosed by the custodian each month is automatically paid to token holders through smart contracts. This way, investors can have peace of mind.

**Fund security is the key**

Traditional financial institutions fear sudden issues like smart contract vulnerabilities and platform跑路 (platform跑路). This is also why major institutions have always been wary of DeFi.