TL;DR 

• COTI V2 is the confidentiality layer for Web3, using Privacy-on-Demand and garbled circuits to enable private, compliant blockchain transactions.
• In DeFi, projects like PriveX (intent-based AI trading DEX) and integrations with protocols like Carbon DeFi highlight COTI's role in protecting traders from MEV and front-running.
• In RWAs, partnerships with Plume and Aureus demonstrate how COTI enables confidential tokenization of real-world assets, unlocking trillions in potential liquidity.
• As a founding member of SAABIC, COTI is also influencing blockchain and AI adoption policy across MENA and Africa.
• Privacy is the missing link for institutional adoption of DeFi and RWAs. COTI provides a compliant, scalable solution.
• Challenges: Adoption curve, competition, regulation, and execution risks.
• Vision: To be the default privacy layer for DeFi and RWA, bridging TradFi with blockchain in a compliant and secure way.

The past decade has seen DeFi (Decentralized Finance) evolve from experimental protocols into an emerging financial system managing billions in liquidity. At the same time, the rise of Real World Assets (RWAs) - tokenized versions of traditional instruments such as bonds, real estate, and commodities is bridging the gap between traditional finance (TradFi) and blockchain. But alongside this progress, two of the biggest challenges still remain: privacy and compliance. Traders, institutions, and governments alike are demanding confidentiality and security without sacrificing the openness and efficiency of blockchain.

This is where COTI V2 comes in. With its Privacy-on-Demand technology, garbled circuits cryptography, and growing partnerships across DeFi and RWA projects, COTI is positioning itself as the confidentiality layer of Web3. From AI-powered intent-based trading with PriveX, to RWA integrations with Plume and Aureus, to policy shaping in the Middle East and Africa through SAABIC - COTI V2 is carving out a central role in the next generation of blockchain adoption.

The Evolution of COTI: From Payments to Privacy Layer

Originally founded as a blockchain optimized for payments, COTI has consistently evolved with industry needs. Its first phase focused on creating scalable payment solutions using DAG technology. But as DeFi and RWAs grew, COTI recognized a much larger gap: the need for compliant privacy across multiple chains. With COTI V2, the project has pivoted into becoming the confidentiality layer for Web3, powered by:

• Privacy-on-Demand (PoD): A modular feature that allows any project to "switch on" privacy when required, without changing blockchains.
• Garbled Circuits: A lightweight cryptographic solution enabling private transactions and confidential computing at scale.
• Cross-Chain Reach: Serving 70+ blockchains, including both EVM (Ethereum, Polygon, Avalanche) and non-EVM. 

This evolution allows COTI to provide something that neither pure DeFi projects nor traditional privacy coins can deliver: institution-grade confidential infrastructure for decentralized finance and RWA tokenization.

COTI V2 in DeFi: Privacy Meets Innovation

PriveX: Intent-Based Perp-DEX

One of the most exciting projects launching on COTI is PriveX, the first intent-based perpetual DEX (Perp-DEX) designed for COTI's privacy-powered mainnet. Unlike conventional decentralized exchanges (DEXs), which often struggle with liquidity, PriveX introduces an intent-based system that taps into the vast liquidity pools of centralized exchanges (CEXs), starting with Binance.

This creates a hybrid advantage:

• Decentralized Control: Users keep ownership of their assets.
• Centralized Liquidity: Access to deep order books that most DEXs cannot match.

But PriveX is not just another DEX. It acts as a launchpad for AI-powered trading agents.

• Users can create and train AI agents with custom datasets.
• These agents can execute strategies, analyze markets, and even self-promote on social media.
• Each agent has a vault, allowing other users to allocate funds and share in profits from successful strategies.

This brings a new era of DeFAI (Decentralized Finance + AI), combining autonomous trading with privacy protection. Most importantly, by running on COTI's mainnet privacy infrastructure, PriveX ensures that proprietary trading strategies remain shielded from front-runners, copycats, and malicious actors.

Carbon DeFi and the Need for Confidentiality

While PriveX showcases trading innovation, Carbon DeFi, a protocol from Bancor, highlights the importance of asymmetric liquidity and customizable trading strategies. Carbon DeFi lets liquidity providers (LPs) and traders create advanced strategies, such as:

• Limit orders (e.g., sell ETH at $3,500).
• Range trading (e.g., sell ETH between $3,000-$5,000, then buy back at $2,000-$3,000).
• Recurring "buy low, sell high" cycles.

It also includes an Arb Fast Lane, which executes arbitrage opportunities across multiple DeFi markets. But here lies the problem: DeFi transactions remain transparent by default, exposing traders to MEV attacks, sandwiching, and front-running.

This is where COTI V2 offers a superior solution:

• Using garbled circuits, COTI obscures critical transaction details.
• Traders can execute complex strategies without revealing order flows.
• This prevents exploitation and ensures fairer, more secure DeFi environments.

In other words, Carbon DeFi showcases the flexibility of on-chain trading, while COTI provides the missing privacy layer needed for DeFi to scale safely.

COTI V2 in Real World Assets (RWA)

RWAs represent one of the largest potential markets for blockchain - estimated to reach $30 trillion globally in the coming years. They bridge TradFi instruments like stocks, bonds, commodities, and real estate into blockchain systems, unlocking liquidity, accessibility, and efficiency.

But the biggest blocker remains confidentiality and compliance. Institutions cannot tokenize sensitive assets if transaction data is fully transparent. This is why COTI V2 has rapidly become a leading partner for RWA-focused platforms.

Partnership with Plume

COTI announced a collaboration with Plume, one of the first public blockchains purpose-built for RWAs. Plume's mission: tokenize TradFi assets (stocks, bonds, real estate) and prepare them for blockchain transfer, trading, and DeFi use.
But as Plume's CEO, Chris Yin, explains:

Through COTI's Privacy-on-Demand, Plume can:

• Enable confidential RWA transactions across 70+ blockchains.
• Provide institutional-grade privacy without requiring users to leave their preferred chain.
• Unlock new liquidity streams by making RWA participation compliant for both retail and institutions.

Partnership with Aureus

Another major partnership is with Aureus.money, a Hedera-native infrastructure for legally compliant RWAs regulated under Swiss law. Aureus focuses on transforming illiquid real-world assets - such as real estate, private equity, and high-value holdings - into compliant digital securities via its Real-World Bridge.

Its system is powered by Aureus Gold (AUg), a 1:1 gold-backed ISO 20022-compliant settlement token, designed to become the backbone of its ecosystem for trading, collateral, and lending.

Here, COTI's Privacy-on-Demand plays a key role by:

• Protecting Aureus transactions from front-running and MEV attacks.
• Ensuring compliance-ready confidentiality for institutions.
• Enabling encrypted RWA settlements without compromising liquidity.

This partnership demonstrates how COTI can be seamlessly integrated into regulated, legally-compliant RWA frameworks, helping bridge TradFi and DeFi.

COTI and SAABIC: Shaping Global RWA Policy

COTI is also taking a policy leadership role in RWA adoption by becoming a founding member of the Saudi Arabia AI and Blockchain Centre (SAABIC). This center aims to accelerate AI and blockchain adoption across MENA and Africa, aligning with Saudi Arabia's Vision 2030, which includes:

• $40 billion AI fund (PIF).
• $100 billion investment in data centers and AI infrastructure (Project Transcendence).
• Strategic partnerships such as a $1.5 billion commitment from Groq.
• Saudi's AI market alone is forecast to grow to $61.85 billion by 2033, at a CAGR of 46.6% .

COTI's CEO, Shahaf Bar-Geffen, emphasizes the significance:

By embedding itself into regional policy discussions, COTI is not just a technology provider but also a strategic influencer in shaping how RWAs integrate with AI and DeFi globally.

Why COTI V2 Matters for DeFi and RWAs

The significance of COTI V2 lies in how it directly addresses the biggest barrier to adoption: compliant, scalable privacy.
Here's why it matters:
1. For DeFi

• Protects traders from MEV attacks, front-running, and strategy leaks.
• Enables new classes of AI-driven trading through projects like PriveX.
• Supports complex DeFi operations without compromising transparency where it matters (auditability).

2. For RWAs

• Makes tokenized assets compliant by ensuring confidential transactions.
• Bridges TradFi and DeFi with legal-grade privacy.
• Unlocks trillions in potential RWA liquidity.

3. For Institutions

• Provides a path to blockchain adoption without regulatory or security risks.
• Works across multiple blockchains, ensuring compatibility.

Challenges and Risks

Despite its strong positioning, COTI V2 faces challenges:

• Adoption Curve: Convincing enterprises and institutions to trust blockchain solutions requires time and proven compliance.
• Competition: Other privacy-focused projects (like Aztec or Secret Network) are also targeting confidential DeFi.
• Regulation: As privacy tech advances, regulators will need to balance confidentiality with AML/KYC requirements.
• Execution: Delivering frictionless Privacy-on-Demand across 70+ blockchains at scale is technically ambitious.

However, by already securing partnerships with Plume, Aureus, and SAABIC, COTI demonstrates significant traction in overcoming these hurdles.

Final Thoughts

COTI V2 is evolving into a core building block for the next wave of blockchain adoption. Its Privacy-on-Demand technology, AI-powered DeFi integrations, and RWA partnerships uniquely position it at the intersection of DeFi innovation and institutional finance. In DeFi, projects like PriveX and Carbon DeFi showcase how COTI's privacy can protect traders and enable AI-driven finance. In RWAs, collaborations with Plume, Aureus, and SAABIC highlight its potential to unlock billions in tokenized assets while ensuring compliance and trust.

The broader Web3 industry is still in its early chapters, but one truth is already clear: without privacy, neither DeFi nor RWA adoption can reach their full potential. And in that gap, COTI V2 is stepping in as one of the most important players to watch.