Implementing privacy features may break composability, creating isolated 'walled gardens' and defeating the purpose of a unified ledger.
Crypto-native builders often misunderstand the pragmatic, risk-averse, and compliance-focused needs of financial institutions.
Business models based on regulatory arbitrage will hit a 'glass ceiling of scale' and will not attract significant institutional capital.
The bug and existential risks associated with deploying cutting-edge cryptography are too high for most financial institutions to bear.
Opportunities Identified
Providing a modular, configurable suite of privacy tools to cater to the diverse needs of different financial use cases.
Onboarding trillions of dollars in real-world assets by offering a compliant, private, and composable on-chain environment.
The rapidly decreasing cost of privacy-enhancing technologies like ZK-SNARKs is making them viable for mainstream adoption.
Gaining market share by meeting institutions where they are today with pragmatic solutions, rather than waiting for regulations or technology to perfectly align with crypto ideals.