Tiger Research Says Nexus Uses ZKPs to Tackle Financial Opacity

Tiger Research, a market research firm, said verifiable finance platform Nexus has proposed a structure aimed at addressing opacity in the financial system through zero-knowledge proofs, or ZKPs.

In a report released on May 6, Tiger Research argued that the core problem in traditional finance is not performance, but a lack of verifiability. It described Nexus as a technological attempt to solve that issue.

The firm pointed to the 2008 financial crisis, when banks failed to reflect troubled assets on their books and risks remained hidden, as well as the collapse of FTX. In systems where users cannot directly verify the status of assets, risks inevitably build up, the report said.

Nexus presents that idea as “Verifiable Finance.” Using zero-knowledge proofs, the platform is designed to allow mathematical verification of key information such as asset soundness without disclosing underlying data in detail. It is also expanding the concept beyond proof of reserves to broader financial functions, including know-your-customer, or KYC, and anti-money laundering, or AML, checks, segregated custody, and trade-matching and settlement logic.

Nexus has also built an integrated structure that extends beyond infrastructure. It combines its own exchange, Nexus Exchange, and the stablecoin USDX on top of a Layer 1 blockchain. Tiger Research said the interaction among those three elements forms a model that recirculates liquidity and demand.

The ecosystem is set to expand through a “Yield Streaming” structure. Returns generated from assets backing USDX are automatically distributed to developers. The yield is allocated in proportion to an app’s total value locked, or TVL, and trading volume, creating incentives for participation in the ecosystem.

Tiger Research added that the revised mainnet launch schedule, now set for the second quarter of 2026, leaves a near-term challenge in delivering tangible user value. Because verifiability is not easily visible under normal conditions, that characteristic could slow early adoption.

“Nexus has chosen finance as a clear use case and is trying to prove the practical value of zero-knowledge proofs,” Yoon Seung-sik, head of research at Tiger Research, said. “The architecture is persuasive, and what remains is execution and time.”