August 9, 2024
Tokenizing Trillions: Key Insights from Sanjeev Birari’s Talk with Ripple’s Jas Takhar

In 2023, the total value of tokenized real-world assets (RWAs) reached an astonishing $2.3 billion, with projections indicating that nearly 10% of global GDP—amounting to a staggering $16.1 trillion—could be on-chain by 2030. As the digital asset landscape continues to evolve, tokenization is not just a trend but a transformation, offering unparalleled opportunities for liquidity, efficiency, and access to a broader range of assets. One of the pioneers at the forefront of this paradigm shift is Sanjeev Birari, Co-Founder and Chief Business Officer of Zoniqx, a company that has been shaping the narrative of RWA tokenization since 2017.

Zoniqx: Bridging the Gap Between Physical and Digital

When Sanjeev Birari co-founded Zoniqx, he was entering uncharted territory. The journey to their first paid client took three and a half years, a testament to the early challenges of navigating a nascent industry. But perseverance paid off, and Zoniqx is now a leader in creating the technological infrastructure necessary for converting real-world assets into digital tokens. Based in Menlo Park, California, Zoniqx has developed a platform that is not only asset-agnostic but also robust enough to handle the complexities of global compliance and liquidity.

"At Zoniqx, we’re not just tokenizing assets; we’re creating a whole ecosystem that addresses the major challenges in this space—compliance, user experience, and liquidity," Sanjeev explained during a recent interview. The company’s platform is designed to tokenize any asset, from carbon credits to commercial real estate, and even minority shares in an NBA team. This flexibility is crucial in an industry that is rapidly expanding beyond traditional assets like gold and real estate.

The Zoniqx Approach: Prioritizing Compliance and Enhancing Liquidity

One of the standout features of the Zoniqx platform is its in-built global compliance standard. "We’ve made compliance integral to our platform," Sanjeev noted. This is particularly important in a space where regulations vary significantly across jurisdictions. The platform uses ERC-7518 for Ethereum-based assets and the DyCIST protocol for non-ERC assets, ensuring that each tokenized asset complies with the relevant regional regulations. This approach not only simplifies the process for issuers but also provides investors with the confidence that their investments are secure and compliant.

However, compliance is only one part of the equation. The other critical component is liquidity, and this is where Zoniqx has truly innovated. Sanjeev highlighted the importance of creating global liquidity distribution rails that connect sellers and buyers across various entities, including decentralized exchanges, family offices, sovereign funds, and financial institutions. "We are solving the problem of issuing tokens and ensuring there is a buy-side ready to purchase these tokens," Sanjeev explained. This focus on liquidity is essential for driving the adoption of tokenization, as it enables asset owners to confidently bring their assets on-chain, knowing there is a market for them.

Accelerating Adoption and Maximizing Impact

The adoption of RWA tokenization is accelerating, driven by the need for more efficient and accessible ways to manage assets. According to Sanjeev, the key to further adoption lies in creating an ecosystem that not only tokenizes assets but also ensures they can be easily traded and utilized. This is where Zoniqx’s global liquidity rails come into play, providing a seamless connection between asset issuers and buyers.

As Sanjeev pointed out, the potential impact of RWA tokenization is enormous. By enabling the tokenization of a wide range of assets, from real estate to intellectual property, the industry is democratizing access to investments that were previously out of reach for many. Moreover, the integration of these assets into blockchain technology brings transparency, security, and efficiency to the market.

Looking ahead, Zoniqx is poised to play a pivotal role in the continued growth of the RWA tokenization industry. With their innovative platform and commitment to solving the challenges of compliance and liquidity, they are well-positioned to lead the way in this rapidly evolving space.

Conclusion

Real-world asset tokenization is no longer a concept of the future; it’s happening now, and companies like Zoniqx are leading the charge. With a focus on compliance, liquidity, and technological innovation, Zoniqx is not just transforming the way assets are managed but also paving the way for a more inclusive and efficient global financial system. As we move closer to a future where a significant portion of the world’s assets is on-chain, the work being done by pioneers like Zoniqx will undoubtedly shape the landscape of digital finance for years to come.

If you are interested in diving deeper into this insightful discussion, you can watch the full interview here.

Connect with Zoniqx

For financial institutions interested in exploring or enhancing their capabilities in blockchain and tokenization, Zoniqx offers a powerful and versatile suite of solutions that streamline the tokenization process. You can tokenize any asset, and Zoniqx offers a secure, compliant, and interoperable solution tailored to meet your needs. To learn more about how Zoniqx can help your organization unlock the potential of tokenized assets, or to discuss potential partnerships and collaborations, please visit our contact page 👉 https://www.zoniqx.com/contact.

Zoniqx ("Zoh-nicks") is a global fintech leader headquartered in Silicon Valley, specializing in converting real-world assets into Security Tokens. It offers an interoperable, compliant infrastructure for the RWA tokenization market, enabling global liquidity and DeFi integration through its end-to-end ecosystem of SDKs and APIs. Zoniqx pioneers on-chain, fully automated RWA deployment on public, private, and hybrid chains. To explore how Zoniqx can assist your organization in unlocking the potential of tokenized assets or to discuss potential partnerships and collaborations, please visit our contact page (https://www.zoniqx.com/contact).