Collaboration with new ecosystem partner Zoniqx will expand the capabilities and ease of use for tokenizing real-world assets (RWAs) within Midnight. This collaboration will enable financial institutions and in-house enterprise developers to build secure, compliant, and interoperable real-world asset (RWA) tokenization applications.

Asset tokenization is projected to be a $16 trillion market opportunity by 2030, and is set to reshape capital markets.

Deploying DyCIST for compliance-first tokenization

At the core of this initiative is the deployment of Zoniqx's DyCIST (Dynamic Compliant Interoperable Security Token, ERC-7518) on Midnight. Designed for institutional-grade security and regulatory alignment, DyCIST enables enterprises to tokenize assets with built-in safeguards for seamless cross-border transactions.

This collaboration will open up institutional access to highly scalable infrastructure that will meet both operational needs and regulatory requirements.

Potential features of DyCIST on Midnight

The DyCIST smart contract framework will introduce critical features for RWA tokenization, including:

• Built-in compliance: integrated compliance oracles and identity management ensure that tokenized assets adhere to jurisdictional regulations. These mechanisms automate compliance checks, reducing operational risks for enterprises managing tokenized securities, real estate, or funds.
• Interoperability: DyCIST’s cross-chain compatibility allows seamless transactions across different blockchain networks, enabling institutions to manage tokenized assets within a broader digital asset ecosystem without being locked into a single infrastructure.
• Enterprise security: DyCIST incorporates payout and recovery mechanisms, safeguarding tokenized assets against loss or misuse.

Bringing DyCIST features to the Midnight network will enable institutions and developers to deploy tokenized assets with the assurance that compliance, security, and cross-chain operability are embedded at the protocol level.

Unlocking tokenization for financial institutions

“The ability to tokenize real-world assets while maintaining the privacy of asset details and transactions via selective disclosure, opens up potential applications for a wide range of RWAs including real estate and private equity and debt funds, insurance products, carbon credits, and alternative investments. Tokenization with selective disclosure also unlocks new financial opportunities beyond compliance and security. Institutions can enhance liquidity, transparency, and operational efficiency, modernizing asset management with shielded data and meta-data, programmable smart contracts, automated compliance, and cross-border transaction capabilities.”

says Midnight CEO, Eran Barak.

“By welcoming Zoniqx to the Midnight Ecosystem, we have a partner that can provide best-in-class RWA security and infrastructure for our growing community to bring financial products on-chain.”

Adopting tokenization doesn’t have to be a high-risk commitment. By building on Midnight with DyCIST, institutions can test proof-of-concepts (POCs) in a controlled environment, validating business ROI before scaling. This approach reduces friction, allowing teams to explore the benefits of digital assets without disrupting existing operations.

Build, test, and deploy tokenization POCs, without the usual friction

Enterprise-grade RWA tokenization shouldn’t mean rearchitecting all of your entire systems infrastructure or navigating compliance roadblocks from scratch. DyCIST on Midnight will provide a developer-friendly framework designed for seamless, secure, and compliant RWA tokenization. This means developers can benefit from:

• Familiar tools: By leveraging Compact, Midnight's developer-friendly language based on Typescript, developers can prototype and deploy tokenization applications without switching to an unfamiliar language.
• Built-in compliance: Compliance oracles, identity management, and access controls are already embedded at the smart contract level, so manual enforcement of security and regulatory checks is not required.
• Enterprise-grade security: Midnight’s architecture prioritizes data protection, so applications can meet internal and external security requirements from day one.

With pre-configured security, compliance, and interoperability, this collaboration empowers developers to move from POC to production faster, without getting stuck on foundational challenges.

Launching the collaboration

As Sanjeev Birari, Co-Founder and CBO of Zoniqx, emphasizes:

"At Zoniqx, we are proud to collaborate with Midnight, a blockchain network that perfectly aligns with our vision for institutional-grade RWA tokenization. The integration of Midnight's privacy-first framework with Zoniqx's compliant and regulated infrastructure creates a powerful synergy, ensuring secure, private, and compliant transactions for institutional investors."

Birari continues,

"By leveraging Midnight's cutting-edge zero-knowledge identity verification, we are setting new standards for privacy-preserving, yet fully compliant, real-world asset tokenization. This collaboration reinforces our mission to bridge institutional finance with blockchain, unlocking new opportunities for investors while maintaining the highest regulatory standards."

Zoniqx will join the team behind Midnight to celebrate the collaboration live at the Digital Asset Summit, where financial institutions and enterprise developers can explore how DyCIST on Midnight streamlines secure, regulatory-compliant tokenization.