a16z Crypto Identifies Privacy as Key Barrier to Institutional Blockchain Adoption

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According to a16z Crypto, blockchain performance and regulatory uncertainty—the two major obstacles to institutional adoption—have largely been resolved with L1/L2 scalability improvements and the enactment of the U.S. GENIUS Act. However, privacy remains the critical challenge, as traditional public blockchains expose transaction details, counterparty information, and position sizes to all network participants. Institutional finance requires selective disclosure and compliance-aligned transactions. a16z Crypto believes mature privacy technology is now the key breakthrough to attract institutional capital onto blockchain.
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