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Privacy in real-world-asset finance sounds like an oxymoron, yet COTI (COTI) and Aureus just inked a deal to make it standard practice. Aureus, built on Hedera (HBAR) and regulated under Swiss law, is tokenizing gold, real estate, and other chunky assets through its Real-World Bridge.
Now it grafts on COTI’s Privacy-on-Demand layer, a garbled-circuit scheme that encrypts trades while leaving compliance hooks intact. Auditors can still peek when required, but frontrunners and data miners see only noise.
Aureus’s first product is AUg, a gold-backed settlement token that speaks ISO 20022 and slots into DeFi for collateral, lending, and cash-like parking.
The debut pair is AUg-USDC on Bancor Carbon, giving the token instant liquidity instead of begging a centralized exchange. Institutional desks get a clean pitch: move tokenized bullion around the clock, settle in seconds, keep trade details private, and satisfy Swiss regulators at the same time.
Identity rails ride with each transfer, so KYC tags stay glued to assets while alpha stays hidden from the public mempool. COTI supplies a lightweight SDK, meaning engineers can integrate privacy calls without a doctorate in cryptography.
The partnership attacks the two anchors holding back RWA growth: strict compliance and fear of front-running. Knock out both and pension funds may finally touch chain-based metals. Aureus plans to list additional high-value assets once AUg finds its footing, including real estate and private-equity slices that normally live on spreadsheets.
As adoption grows, privacy fees share revenue back to token holders, giving traders an incentive beyond gold’s stability.
If execution lands, expect rival L1s to clone the blueprint and a wave of private-equity shops to test controlled transparency. Traders gain a hard-asset stable token that hedges fiat decay while earning protocol yield. COTI gains a marquee showcase, proving privacy tech can play nice with regulators.
The DeFi privacy wars just opened a gold-plated front, and this time the vault door is digital.
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