Privacy is a human right and a hallmark of an open society. Yet, achieving privacy has become increasingly challenging in a world where most human activity is online. The scope of what privacy entails is wide-ranging; however, throughout this report, we’ll be focusing on financial privacy. Per Coin Center, financial privacy constitutes two topics: (i) Data security – ensuring that an individual maintains principal authority over their credentials and their use, and (ii) Privacy – the ability of an individual to control what information they release to the public and what information is kept private. Retaining these features is not easy in the digital assets space due to most Layer-1 blockchains’ inherently open and transparent nature. As a result, the growth of DeFi and Web3 could be lagging due to any party preferring privacy being unable to participate.