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In the evolving landscape of decentralized finance (DeFi), privacy and compliance are becoming critical factors for institutional adoption. As traditional financial giants like Deutsche Bank and BlackRock transition on-chain, solutions that balance regulatory compliance with data privacy are essential.
To delve deeper into this topic, The Founder sat down with Dr. Anish Mohammed, the CTO & Co-Founder of Panther Protocol. With over two decades of expertise in cryptography and security, Dr. Anish has contributed to foundational blockchain protocols and advised leading financial institutions on privacy and compliance. In this exclusive interview, he shares his insights on the future of privacy in institutional DeFi, the role of Panther Protocol, and how privacy-preserving technologies are shaping the next era of finance.
Ǫ. Dr. Anish, can you tell us a bit about your background and what drew you to the world of blockchain and cryptography?
I've spent over two decades in cryptography, security, and financial systems, but my journey began unexpectedly as a young boy, with a cryptographic puzzle in a magazine that offered a $100 reward. That moment sparked a lifelong fascination with problem-solving. Despite a detour through medical school, I ultimately returned to one of my passions, cryptography.
When blockchain emerged, I saw its potential to transform finance but recognized its lack of privacy as a key obstacle. My work led me to projects like Ripple, Ethereum, and various privacy-focused initiatives, culminating in Panther Protocol, which leverages Zero-Knowledge proofs to bring privacy to DeFi while enabling compliance. My focus at Panther centered on developing cryptographic solutions that restore financial privacy while maintaining the infrastructure for institutional engagement.
Ǫ. What inspired you to co-found Panther Protocol, and what vision did you have in mind when starting this journey?
Panther was founded to address a core challenge in DeFi: the need for privacy in on-chain financial activities. While DeFi has unlocked a world of efficiency and potential, most blockchains also expose transaction details that institutions and sophisticated users typically expect to remain private. Our vision is to provide a confidential transaction infrastructure that will allow users to protect sensitive financial data combined with powerful tools that can be used to help prove compliance with regulations.
Ǫ. With traditional financial institutions like Deutsche Bank and BlackRock entering DeFi, how do you see privacy playing a role in their transition?
The case for institutional participation in DeFi is made much more difficult if conducting transactions necessarily means exposing strategies or counterparties to unnecessary risks. Financial institutions operate within structured environments that support privacy and Panther is building the infrastructure they need to interact with DeFi while maintaining control over their transaction data.
Ǫ. Panther Protocol is built on Zero-Knowledge technology. Can you briefly explain how this enhances security and compliance for institutions?
Privacy-Preserving Transactions:
Zero-Knowledge proofs will allow Panther to enable privacy-preserving transactions within its Shielded Pool. Users will be able to prove the validity of a transaction without revealing sensitive details about the transaction itself.
Selective Disclosure:
One of the most powerful features of Panther's ZK implementation will be selective disclosure. Users will be able to disclose their transaction history to specific parties at will, without compromising overall privacy. This allows for enhanced privacy while still providing proof of key information for compliance and auditing purposes.
Smart Compliance Tools:
The protocol will support Zero-Knowledge attestations of truth, allowing users and market operators to prove statements about their identity, total balance, or transaction history without revealing the underlying data.
Ǫ. Regulatory clarity has been a major concern in DeFi. How does Panther help institutions balance privacy with regulatory requirements?
Panther will address this challenge through Smart Compliance, a system that enables users and market operators to prove information necessary for compliance.
At the heart of Panther’s Smart Compliance are customizable environments called Zones. Licensed entities (Zone Managers) will be responsible for end-to-end compliance. Zone Managers have access to built–in tools that allow them to set requirements such as which assets, dApps and DeFi protocols are allowed and set transaction limits. They will also be able to configure which information must be disclosed and under what circumstances for regulatory purposes. However, instead of revealing all transaction details, Panther will be able be used to reveal only the relevant data, and will even be capable of using Zero-Knowledge proofs—a cryptographic method that allows users to prove something is true (such as passing a KYC check) without exposing sensitive data.
Additionally, Panther will be configurable for first-party or third-party compliance tools, meaning users can verify their identity or transaction history when necessary without the blockchain itself storing their personal data. This creates a DeFi environment where individuals and institutions can interact with confidence and enhanced privacy, unlocking new possibilities for mainstream adoption.
Ǫ. What are the biggest challenges Panther is currently tackling in terms of adoption and technological development?
As with any new technology, the focus is on building the necessary infrastructure to support adoption. The Panther Protocol Foundation has announced its intention to support two prospective Zone Managers efforts to operate their own Zones. Panther contributors are working to establish the systems required for integration. At the same time, these partners are refining their own frameworks to make the most of Panther’s privacy-preserving and compliance-enhancing features.
As these collaborations continue to progress, Panther contributors are also focused on attracting additional financial service providers to expand Panther’s network of Zones. This is part of an ongoing effort to ensure that institutions seeking both confidentiality and regulatory alignment can easily integrate Panther’s technology.
Ǫ. Panther is focused on creating privacy-enhanced trading Zones. Can you elaborate on how these Zones work and their significance in DeFi?
Panther’s Shielded Pool will be logically partitioned into Zones, which will keep users and assets separated. These Zones are managed by licensed entities, known as Zone Managers, who will oversee user experience and ensure compliance, enabling users to transact securely while maintaining control over their data. Zones will offer configurable access rules, allowing participants to engage in financial activities with enhanced confidentiality. This creates an environment where institutions can leverage DeFi while protecting their trading strategies and counterparties.
Ǫ. As privacy concerns grow, do you foresee regulatory bodies being more accepting of privacy-preserving solutions like Panther?
The regulatory landscape for privacy is evolving, and there is every reason to believe that confidentiality-preserving solutions like Panther will become more widely accepted. The introduction of GDPR fundamentally changed the way privacy and data ownership are viewed, not just in Europe but globally. It established the principle that individuals should have control over their personal data, and this shift has had a ripple effect, with data protection authorities, and stronger regulatory frameworks worldwide.
I believe that crypto should be treated similarly. If anything, blockchain’s transparency makes privacy protections even more necessary. Financial institutions, enterprises, and regulators already recognize that privacy is not about secrecy but about responsible data management and user protection. Panther aligns with this philosophy by providing a framework that allows users to prove compliance without exposing sensitive information.
As concerns about surveillance, data breaches, and financial confidentiality continue to grow, regulatory bodies may see privacy-enhancing technologies not as obstacles but as tools for achieving both privacy and compliance. Solutions like Panther can help bridge the gap between the need for regulatory oversight and the right to confidentiality, making them increasingly relevant in today’s digital financial ecosystem.
Ǫ. What role do you think privacy will play in the broader DeFi ecosystem over the next five years?
It is unlikely that we will see mainstream adoption of DeFi without similar levels of privacy that investors and institutions are accustomed to in TradFi, and to a lesser extent, in Centralized Finance (CeFi). Historically, the challenge has been providing greater levels of confidentiality without creating additional challenges when it comes to compliance. Panther is positioned to overcome these challenges, which will ultimately help users take advantage of everything DeFi has to offer, without unnecessary exposure or running afoul of regulations.
Ǫ. Finally, for institutions or investors looking to explore Panther Protocol, what’s the best way to get started?
They can visit pantherprotocol.io to learn more about Panther Protocol.
