[Recap] Building Better On-Chain Infrastructure to Enable Institutional Adoption

Better On-Chain Infrastructure to Enable Institutional Adoption.” The session featured three experts at the forefront of blockchain technology and institutional engagement:

The discussion centered on how privacy, compliance, and real-world asset tokenization are shaping the future of institutional adoption of blockchain. Each speaker shared insights into their respective projects—Midnight, zkSync, and Sui - and addressed key challenges and opportunities surrounding enterprise-level Web3 implementation.

Dr. Ben Beckman began the discussion by underscoring Midnight’s mission to solve the enterprise privacy dilemma. Drawing on zero-knowledge proofs, Midnight enables smart contracts to handle private data locally so that sensitive information never becomes publicly visible on-chain. Dr. Beckman emphasized that this approach preserves the benefits of decentralization—such as trustless settlement—while shielding critical details, like supply chain logistics, from external parties.

Omar Azhar turned the spotlight on how institutions recognize the cost and efficiency advantages of blockchain but still grapple with compliance and multi-party interoperability. He detailed zkSync’s dual-environment approach, which lets organizations configure public or private transactions within a Layer 2 framework on Ethereum. This flexibility, Omar noted, helps enterprises maintain confidentiality for sensitive data while tapping into Ethereum’s robust security and global liquidity.

Luisa Bai then highlighted Sui, a high-performance Layer 1 known for its parallel-execution model and object-based architecture. She pointed to the significant volume of institutional trading taking place on Sui-based DeFi platforms, attributing part of the network’s rapid growth to large-scale liquidity providers. According to Luisa, these features offer the operational and security benefits that major institutions are seeking as they move into on-chain environments.

All panelists agreed that privacy is paramount for institutions. While blockchain transparency can drive trust and accountability, large enterprises often require selective confidentiality—consider a bank that prefers not to broadcast its full transaction flows, or a manufacturer hesitant to reveal its entire supplier network.

Dr. Beckman explained how Midnight uses zero-knowledge proofs to keep transaction data off-chain, presenting only a cryptographic proof. This “zk-first” framework ensures end-users and enterprises can protect their most sensitive data without losing the efficiency and trust benefits that blockchains provide. Omar introduced zkSync’s Validium model, which allows transaction data to be posted privately—in dedicated private servers or a specialized data-availability layer—instead of on Ethereum mainnet. In this way, multiple parties can each run a private Layer 2 chain while remaining interoperable through zero-knowledge proofs, effectively combining privacy with trustless settlement.

Turning to the topic of stablecoins, Luisa highlighted their role in fueling institutional DeFi participation. She drew attention to projects like Circle’s USDC being integrated into the Sui network, describing stablecoins as the “on-ramp” that helps institutions transact in familiar currency units. Luisa emphasized that stablecoins serve as a bridge between traditional finance and blockchain-based liquidity pools.

Looking ahead, the panel identified real-world asset (RWA) tokenization as a key trend for 2024–2025. From money market funds to private credit, tokenizing these assets on-chain can allow round-the-clock settlement, immediate global liquidity, and new ways to package instruments into yield-bearing digital offerings. Luisa and Omar both noted that despite its clear potential, large-scale adoption of RWA tokenization will likely hinge on clearer regulations and continued development of privacy-preserving technologies—capabilities that networks like Midnight, zkSync, and Sui aim to provide.

All three speakers highlighted regulatory clarity—especially around stablecoins—as a key near-term catalyst. Luisa expressed particular optimism about forthcoming stablecoin legislation, viewing it as the tipping point that could unlock corporate treasuries and financial institutions to fully leverage digital currencies. Dr. Beckman added that compliance requirements in sectors like healthcare, supply chain, and fintech make privacy and oversight frameworks particularly important. He stressed that the ability to share data selectively, without exposing entire ledgers, will be central to winning enterprise buy-in.

Omar underscored the importance of open-source development for building trust in cryptographic solutions. By likening zkSync’s approach to widely audited open-source projects such as Linux, he illustrated how transparency helps institutions feel more confident in adopting blockchain technologies. The more developers and enterprises can inspect, test, and adapt the code, he said, the more rapidly reliable, scalable Layer 2 solutions will emerge.

Each project outlined its plans for the coming year. Dr. Beckman described how Midnight will continue refining its privacy-focused tooling, including a TypeScript-based smart contract language and a “Witness Protection Program” designed to identify accidental data leaks. Omar explained that zkSync aims to expand its ecosystem of private-permissioned L2s (Validiums) and enhance interoperability among them, so multiple parties—like banks or large asset managers—can process private transactions while utilizing trustless systems. Meanwhile, Luisa noted that Sui will deepen its DeFi liquidity pool and stablecoin offerings, and prepare for the launch of Walrus, a decentralized storage network poised to attract enterprise-level data solutions.

All three speakers called on institutions to share their requirements and collaborate in shaping privacy, compliance, and user experience features. They emphasized that 2024 and 2025 will be pivotal years for enterprise-grade blockchain infrastructure, as regulatory frameworks settle and new technological advances bring broader adoption within traditional industries.

The Tie Innovator Webinar highlighted a major theme: privacy is no longer optional for institutions exploring Web3. By combining zero-knowledge proofs, customizable Layer 2s, and novel Layer 1 designs, new-generation protocols like Midnight, zkSync, and Sui are unlocking real-world solutions—spanning private payments, RWA tokenization, and beyond. As regulatory clarity improves and enterprise-grade tooling evolves, the panelists agreed that we can expect significant momentum in institutional on-chain adoption in the coming year.