Listen to the article
Entry, the compliance-native infrastructure bridging institutions and decentralized finance (DeFi), has announced an integration with the Midnight Foundation to combine privacy-preserving technology with regulatory compliance for institutional blockchain applications.
The collaboration brings together Entry’s Asset Screening technology and Midnight’s zero-knowledge selective-disclosure architecture, creating a framework that allows financial institutions to meet regulatory requirements such as MiCA and FATF standards—without exposing sensitive personal or commercial data.
Merging privacy and regulation for scalable DeFi
Copy link to section
As the institutional scale of blockchain becomes widespread, institutions are increasingly presented with one of the greatest challenges: to show that they are compliant with their KYC, AML, and sanctions screening, and yet ensure the privacy of the data they use.
This is where the Entry–Midnight integration presents an operational alternative to these conflicting needs.
Rodney Prescott, CEO of Entry, said:
Institutions need a practical path to on-chain finance that doesn’t force a choice between privacy and regulation. By combining Entry’s asset screening with Midnight’s selective-disclosure architecture, we can help issuers and platforms meet real compliance obligations while protecting sensitive data. This is how RWA tokenization scales responsibly.
The partnership introduces a privacy-ready RWA playbook, reference implementations, and cohort-based onboarding programs designed to help teams move from proof-of-concept to production.
The collaboration aligns Midnight’s zero-knowledge, programmable smart contracts with Entry’s compliance-centric infrastructure and deep institutional experience.
Building compliant, privacy-preserving architectures
Copy link to section
The joint solution allows developers to protect data and metadata, disclosing only the information necessary for regulatory review.
It enables cryptographic proofs of compliance within the frameworks of both MiCA and FATF while retaining attestations for audit and governance.
Fahmi Syed, President of Midnight Foundation, said:
Financial solutions cannot scale on-chain until privacy and compliance compliment each other. Midnight was built to bring rational privacy to blockchain, protecting sensitive data for users and businesses whilst supporting compliant solutions through programmable disclosure. Entry Foundation’s focus on real screening and education provides the operational layer that makes this possible—connecting privacy-preserving technology to the compliance standards institutional markets require.
Accelerating institutional readiness for DeFi
Copy link to section
As enterprises start moving from pilots to production-level deployments, the collaboration aims to provide the architecture required to achieve compliance without compromising privacy.
The organizations will release joint educational materials for issuers, custodians, and developers, solution architectures, policy checklists, and templates for audit trails.
Reference integrations will also show how role-based access, selective disclosure of identity and asset data, and secure delegation mechanisms will be embedded—key abilities for institutional-grade DeFi platforms.
This integration marks a step forward for privacy-compliant real-world asset (RWA) tokenization, paving the way for regulated DeFi adoption across institutional markets.
