Recently, discussions about bringing real-world assets (RWA) onto the blockchain have become popular, but there's a strange phenomenon: financial giants like BlackRock seem to be observing rather than acting aggressively as expected.

Upon closer reflection, the issues boil down to two points—privacy and compliance.

Imagine an institution planning to transfer hundreds of millions of dollars in assets onto the blockchain. What does that mean? It means competitors could see every transaction and position on-chain. This is a nightmare for any serious institution. Meanwhile, regulators are also watching closely, ensuring every operation complies with legal frameworks. These two mountains—privacy protection and regulatory compliance—block the last mile of large-scale institutional entry.

That's why solutions specifically targeting the financial sector are beginning to gain attention. For example, privacy-focused L1 blockchains designed for institutions can protect transaction privacy while ensuring full compliance with regulations. Simply put, they use privacy technology to give institutions peace of mind.

In the long term, RWA is indeed a key direction for the next decade. As technology matures, more and more traditional assets will be tokenized. Projects that truly solve the core issues of privacy and compliance are likely to become infrastructure-level entities.

Projects with genuine technological barriers may be worth paying attention to.