The Case for ZIGChain: The Liquidity Layer for Real Estate Tokenization

Zignaly
Zignaly
Published in
4 min readNov 11, 2024

The Real Estate Tokenization Market

The tokenization of real estate is rapidly gaining traction, driven by the advantages of fractional ownership, enhanced liquidity, and increased access for a broader base of investors. Analysts estimate that the tokenized real estate market, valued at around $3.5 billion in 2024, could grow to over $19 billion by 2033, representing a compound annual growth rate of approximately 21%. This expansion is largely attributed to tokenization’s ability to break down traditional investment barriers and simplify property transactions, positioning it as a transformative force in the sector​.

It’s all Infrastructure — But What Issuers Need Is Demand

While many blockchain protocols focused on real estate tokenization excel at providing technical infrastructure, they often overlook a critical component for issuers: liquidity. Beyond just enabling fractional ownership of properties, issuers need a steady influx of demand — investors willing to purchase these tokens and generate a liquid market. Without this liquidity, tokenized assets risk remaining illiquid and unattractive, limiting the true benefits of blockchain for property assets. Consequently, protocols that can not only tokenize assets but also cultivate demand through strong investor networks or integration with established DeFi ecosystems are much more attractive to real estate issuers.

Investors Do Not Want To Deal With Complexity

Investors are increasingly drawn to the opportunities in tokenized real estate but are often deterred by the complexity of managing these digital assets across various platforms. Many prefer a straightforward, seamless experience that allows them to invest without handling the technicalities of blockchain, wallets, or ongoing asset management. Simplified interfaces, automated management tools, and streamlined access to these investments can greatly enhance appeal, helping investors benefit from real estate tokenization without being burdened by its underlying complexities.

The Zignaly & ZIGChain Advantage

Started in 2018, Zignaly is a FSCA licensed social investment platform, and Binance Link Partner. Zignaly connects investors across the globe with the top curated fund managers, using its unique state of the art technology stack.

Zignaly is extending to ZIGChain, an EVM Compatible Layer 1 blockchain. Powered by an innovative wealth management module built using the Zignaly investment stack, ZIGChain will allow anyone to co invest alongside professional fund managers in DeFi, RWAs, Gaming & a host of other asset classes. This shall enable millions of prospective wealth seekers, who today don’t have the time, skill or knowledge to participate in these opportunities, to bring on chain liquidity & power the dApp ecosystem being built on ZIGChain.

With 600K+ registered users of the Zignaly protocol & 50K+ unique ZIG holders, Zignaly (& by extension ZIGChain) avoids the typical cold start problem driven by a strong community of wealth seekers. We are the largest Binance Broker Partners with an AUM (which becomes available on chain for allocation) of $120 Million (and growing).

What We Solve For

ZIGChain aims to bridge the gap between the ease & familiarity of Web2 and the innovation of DeFi by offering a seamless user experience that abstracts away complex blockchain interactions. Through account abstraction and a user-friendly interface, the ZIGChain Wealth Management Module will enable investors to access DeFi and crypto without handling private keys, wallets, or transaction management.

The tech stack will allow wealth managers to manually or via smart algorithms and automated asset management tools deploy yield generation strategies thus making decision-making simple. This includes managing when and where to invest, optimizing entry and exit points, and mitigating risk. This approach provides users with secure, managed access to DeFi’s benefits and access to a professional wealth manager, creating a straightforward investment experience that feels as intuitive as any traditional financial service.

More importantly, in doing this, we solve for the demand that tokenized real estate issuers will need. For this, we rely not just on our tech stack to remove friction and ease the onboarding of capital on chain but also have the history of doing this successfully for 6 years.

Conclusion

In conclusion, while there are numerous blockchains and platforms that are focused on the supply side & wooing RWA issuers to them, there is very little conversation happening on where the liquidity to buy these tokenized assets will come from. We believe it is ideal for issuers to think of this aspect when choosing a partner to proceed with.

In choosing ZIGChain as an infrastructure partner, Issuers would not only gain the advantages of a robust, well-tested blockchain platform for real estate tokenization but also access to a vibrant ecosystem of engaged investors & a compliance framework delivered by our partners across the globe.

With a track record of delivering seamless, managed investment experiences, ZIGChain simplifies the complexities of tokenized assets, ensuring issuers can attract and retain the demand necessary for a liquid, thriving marketplace. This approach represents a forward-thinking partnership, aligning issuers with a mission to democratize wealth generation while expanding their reach to global, on-chain liquidity.

About Zignaly and ZIGChain:

Since 2018, Zignaly has been on a mission to democratize wealth-generation opportunities. Through its user-friendly platform, Zignaly connects 500,000+ users worldwide with top digital asset managers to make investment strategies accessible to everyone.

ZIGChain represents the next evolution in this journey. ZIGChain is a Layer 1 blockchain that provides an infrastructure where developers can easily create wealth-generation protocols, fund managers can deploy advanced strategies at scale, and users can access wealth-building opportunities previously reserved for a select few. The ZIGChain $100M Ecosystem fund is powered by DWFLabs & UDHC Finance!

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Zignaly
Zignaly

Published in Zignaly

Empowering financial well-being by using crypto as a medium to access investment opportunities

Zignaly
Zignaly

Written by Zignaly

Zignaly is a group of passionate individuals who are building a trusted crypto social investment platform that leverages the playing field for everyone.

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