Sui Blockchain and Ant Digital Partner to Tokenize ESG Assets

Sui, a Layer-1 blockchain, has announced a strategic partnership with Ant Digital, the technology arm of China’s Ant Group, to tokenize real-world assets (RWAs) with a focus on environmental, social, and governance (ESG) assets.

The first tokenized assets, referred to as “notes,” will be linked to a Chinese solar material manufacturer listed among the Fortune China Top 500, the firm said in a recent press release.

Ant Digital, which operates independently from Ant Group as of April 2024, provides blockchain-based solutions through its brand ZAN.

ZAN Offers Tools for Web3

Launched in September 2023, ZAN offers plug-and-play tools powered by the AntChain Open Labs TrustBase open-source stack.

The product suite includes solutions for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, supporting the issuance and management of tokenized RWAs.

The partnership builds on previous collaborations. In August, ZAN integrated with Mysten Labs, the original contributor to the Sui blockchain, by becoming a Remote Procedure Call (RPC) node operator.

“We established our partnership in August and have now achieved another significant milestone. Sui is a star public chain dedicated to technology and value creation, with a rich ecosystem and diverse applications,” said Cobe Zhang, Head of Web3 Product at Ant Digital Technologies.

“Looking ahead, we hope to continuously provide various advanced technical services to more RWA projects, especially in the new energy sector, and our technology can better support the development of the real economy.”

Sui’s network has seen growing interest from prominent investors. In November, VanEck launched a Sui-based financial product, following a similar move by Grayscale in August.

With nearly $2 billion in total value locked (TVL), Sui’s ecosystem continues to expand.

On December 11, the blockchain announced an integration with Backpack Exchange, granting access to the non-custodial Backpack Wallet.

The ESG tokenization trend aligns with broader initiatives in green finance.

China’s involvement in the China-Singapore Green Finance Taskforce highlights its commitment to sustainable financial systems.

Similar efforts are seen in Hong Kong, which recently issued tokenized green bonds worth 800 million Hong Kong dollars ($100 million) as part of its Green Bond Programme.

Beyond China, tokenized ESG initiatives are gaining traction globally. PowerDime, an energy finance firm, operates a tokenized renewable energy trading platform on the Layer-1 Chintai blockchain, offering virtual wind and solar power purchase agreements.

Tokenization Market Could Reach $16T by 2030

A report by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates the global value of tokenized illiquid assets will reach $16 trillion by 2030.

Even more conservative estimates from Citigroup suggest that $4 trillion to $5 trillion worth of tokenized digital securities could be minted by 2030.

Recognizing this potential, major companies are making significant moves in the tokenization space.

Goldman Sachs, for instance, plans to launch three new tokenization products later this year, driven by growing client interest.

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