[a16z Crypto Explains Investment in Digital Asset: Privacy as the Key Breakthrough for Institutional Adoption] According to a report by Jinse Finance, a16z Crypto published an article explaining the reasons for investing in Digital Asset. It stated that the three major obstacles that previously hindered institutional adoption of crypto technologies were blockchain performance, regulatory uncertainty, and privacy issues. Now, the blockchain performance issue has been largely resolved, with L1 and L2 networks achieving the scale, speed, and complexity required to meet institutional needs. The U.S. GENIUS Act has come into effect, addressing regulatory concerns. a16z Crypto believes that traditional public blockchains, by default, make transaction information public, which facilitates verification but fails to meet institutional financial transaction requirements such as selective disclosure, compliance needs, and multi-party collaboration. For example, when banks conduct government bond transactions or repo transactions, the parties involved need to share information but should not expose holdings, counterparties, or transaction sizes to all network participants. Therefore, privacy remains the core challenge for institutions entering the blockchain space. While most blockchain projects attempt to make institutions adapt to the crypto ecosystem, Digital Asset chooses to adapt crypto technologies to institutional needs. Mature privacy technologies have become the key breakthrough to attract institutional participation.