Emanuele joined the community for an open chat following the release of the article on Dusk’s modular architecture. He shared updates, technical insights, and reflections on progress including a few highly anticipated developments that are still under wraps.
This summary captures the key highlights from the discussion.
London Trip & Developments
Q: We saw the team was in London recently, can you share anything about what happened there?
A: I can’t share details yet, but it will become very clear soon why we went.
What I can say:
- I’ve never been this bullish on Dusk, or any project I’ve worked on.
- The London trip was a major step toward realizing our long-term vision.
- It’s the result of months of work, and we’ve laid the groundwork for something significant.
This past week has been especially productive. I’m genuinely optimistic, not trying to create hype, just sharing how I honestly feel. And I appreciate everyone who’s stayed with us through the ups and downs.
What Is the MIPS-Powered Pre-Verifier?
Q: Can you explain what the MIPS-powered pre-verifier actually is, and how Dusk uses it?
A: On rollups like Optimism, state transitions can be challenged for 7 days using fraud proofs. MIPS is a system that helps formally verify whether a state transition is valid, without re-executing the transactions.
Ethereum doesn’t natively verify these proofs. But Dusk does things differently:
- Since we control both DuskEVM and DuskDS, we embed MIPS-based checks directly into our settlement layer.
- This means DuskDS can pre-verify state transitions from DuskEVM before accepting them, no waiting period needed.
- It’s faster and removes reliance on external challenge mechanisms.
Instead of waiting for others to verify us, we verify ourselves, efficiently and securely.
What’s Needed to Launch Securities Trading?
Q: What else is needed to launch the NPEX dApp and enable securities trading? Any blockers?
A: No regulatory blockers, we just need DuskEVM live.
Once it launches:
- The NPEX app can go live and enable real securities trading.
- Assets will be composable across the DuskEVM ecosystem.
- Users complete KYC once via NPEX to access all regulated apps.
We can also support wrapped versions of securities:
- These can trade freely in permissionless DeFi.
- Redemption still requires KYC, but general use won’t.
It’s a way to balance compliance with DeFi composability.
Why Centralized Exchanges Can’t Trade Securities Yet
Q: What’s stopping exchanges like Coinbase or Binance from building apps on Dusk to offer stock trading?
A: One word: Licensing.
- To trade securities, you need a broker or MTF license, and neither Coinbase nor Binance has one.
- They can’t legally offer stock trading without routing users through a licensed venue like NPEX.
In theory, they could:
- Build apps on Dusk.
- Onboard users through NPEX.
- Act as intermediaries and receive a kickback.
But in practice, they won’t do that, because it means surrendering users and control. It’s simpler (and more profitable) for them to just keep trading crypto.
Getting the necessary licenses isn’t easy, even major institutions have struggled. That’s why Dusk + NPEX’s licensing stack (Broker, MTF, ECSP) is such a major competitive edge.
How Dusk Onboards Venues Like 21X
Q: What’s the process for onboarding venues like 21X? Why do they partner with Dusk?
A: Each venue has different rules and needs, so yes, negotiations are individual.
Our edge is regulatory:
- Through NPEX, we hold a broker license and can route investor orders to their venues.
- That makes us a compliant distribution partner, something other chains can’t offer.
Established players move slowly. Newer ones like 21X are more agile and focused on onboarding asset managers and businesses with retail flow.
With DuskEVM, users get access to these assets via NPEX, without ever interacting with NPEX directly. Assets become fractional and composable, unlocking use cases other chains can’t legally support.
What’s Needed for On-Chain ETFs?
Q: What are the technical and regulatory steps needed to support ETF trading on-chain? Is the DLT-TSS license required?
A: No, DLT-TSS is not required to trade ETFs on Dusk, but it would help long term.
Today, ETFs can be accessed in two main ways:
- Via broker routing:
- ETFs can stay on external venues.
- NPEX routes orders through its broker license.
- This is the easiest short-term path.
- Via direct tokenization on Dusk:
- Requires either the DLT-TSS license or
- A hybrid model using NPEX + Euroclear + T2S (the EU central securities system).
We’re working toward T2S access, which would allow us to tokenize assets while storing them securely off-chain, similar to how custodians work today. This makes ETF support more scalable without needing every issuer to deploy natively on Dusk.
DUSK Token Utility & Gas Demand
Q: If gas fees are low, could that hurt DUSK token demand or utility?
A: No, quite the opposite.
- Every on-chain operation (trades, redemptions, wrapped asset movement) still requires gas.
- As more apps and assets go live, demand for gas increases, even if fees are low.
- Staking remains a core utility, and we’re exploring additional use cases like:
- Security deposits for asset issuance
- Boosted rewards or access based on staked DUSK
Also, more broker integrations = more assets = more transactions = more gas use.
DUSK’s role in the system only grows as adoption scales.
Will There Be Pushback from TradFi?
Q: Since Dusk reduces costs and removes middlemen, do you expect resistance from traditional financial institutions?
A: Not really.
- Most institutions are focused on the cost-saving side, they’re eager to modernize.
- They see value in asset fractionalization, regulatory flexibility, and compliant infrastructure.
- Rather than resisting, many want in, for both business and marketing reasons.
The goal isn’t to eliminate jobs, it’s to unlock new financing opportunities, especially for underserved businesses like SMEs. That’s the heart of Dusk’s mission: decentralizing access to capital, not just streamlining legacy finance.
Will NPEX Enable 24/7 Trading?
Q: Will the NPEX app support 24/7 trading when it launches?
A: In most cases, yes.
- Many assets will be tokenized and backed by real securities, allowing them to trade 24/7 on-chain.
- The underlying assets can only be redeemed during standard market hours, but trading the tokens won’t be restricted.
As long as redemption rules are respected, on-chain trading can continue around the clock, similar to how stablecoins work today.
Watch the full recording of the conversation here: https://www.youtube.com/watch?v=KituGJXXdNo
If you have further questions, feel free to drop them below or ask in our Dusk Community.