Sui, a prominent Layer-1 blockchain, has entered a strategic partnership with Ant Digital, the technology arm of Ant Group, to facilitate the tokenization of real-world assets (RWAs) with a special focus on environmental, social, and governance (ESG) initiatives.
The partnership’s first tokenized assets—referred to as “notes”—will be tied to a leading Chinese solar materials manufacturer, recognized in the Fortune China Top 500, according to a recent press release.
ZAN’s Web3 Solutions Power Tokenization
Operating independently since April 2024, Ant Digital leverages its ZAN platform to deliver blockchain-based solutions. Launched in September 2023, ZAN provides plug-and-play tools built on the AntChain Open Labs TrustBase stack. These tools include compliance features like Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, simplifying the issuance and management of tokenized RWAs.
This partnership strengthens existing ties between the companies. In August 2024, ZAN collaborated with Mysten Labs, the main contributor to Sui’s blockchain, by serving as a Remote Procedure Call (RPC) node operator.
Cobe Zhang, Head of Web3 Product at Ant Digital, highlighted the milestone, saying:
“Sui is a star public chain dedicated to value creation, with a vibrant ecosystem. We aim to bring advanced technical services to more RWA projects, particularly in renewable energy, to support real economic development.”
Growing Momentum in the Sui Ecosystem
Sui’s network has rapidly gained traction among major investors. In November, VanEck introduced a Sui-based financial product, following Grayscale’s similar initiative earlier in the year. The blockchain ecosystem, now boasting nearly $2 billion in Total Value Locked (TVL), continues to expand its applications.
On December 11, Sui also integrated with Backpack Exchange, enabling users to access the non-custodial Backpack Wallet.
Global Trends in ESG and Tokenization
The tokenization of ESG assets aligns with broader trends in green finance. For example, China’s role in the China-Singapore Green Finance Taskforce demonstrates its dedication to building sustainable financial systems. Meanwhile, Hong Kong issued $100 million worth of tokenized green bonds under its Green Bond Programme.
Globally, the adoption of ESG tokenization is rising. Firms like PowerDime use tokenized platforms to offer virtual renewable energy agreements for wind and solar power, running on Layer-1 chains like Chintai.
Tokenization Market Forecast
The future of tokenized assets looks bright. According to a report by the Global Financial Markets Association (GFMA) and Boston Consulting Group, the value of tokenized illiquid assets could surge to $16 trillion by 2030. Even conservative estimates from Citigroup predict between $4 trillion and $5 trillion of tokenized digital securities by the same year.
Acknowledging this potential, key financial players like Goldman Sachs are preparing to roll out new tokenization products later this year, responding to surging client demand.
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