I. Intangible assets are the next trillion dollar market
In today’s digital economy, a company’s core value is undergoing a fundamental shift from visible plants and machinery to invisible assets such as brand, data, algorithms, and social influence. Ocean Tomo’s long running study shows the change clearly: in 1975, intangible assets accounted for just 17% of S&P 500 market value; by 2020, the share had risen above 90%. Yet these “true moats” remain largely invisible in traditional finance: rights are hard to establish, valuation systems are immature, secondary markets are missing, and such assets are rarely accepted as collateral. As a result, creators and companies with genuine innovation cannot readily convert invisible value into visible capital, and markets suffer from information asymmetry and valuation distortions.
With the maturation of distributed ledger technology (DLT) and zero knowledge proofs (ZKP), we finally have a combined technology plus mechanism toolkit to drive the registration, verification, tokenization, and financing of intangible assets. This path is materializing through the paradigm of real world assets (RWA). DLT and ZKP open a channel that did not exist in the pre digital era, bringing intangible assets into financial ecosystems for recognition, financing, and circulation, thereby reshaping the capital value system.
II. The dilemma of intangibles and a new digital era thesis
Corporate competitiveness has shifted from capital-intensive to knowledge-intensive. Core assets are no longer land and machines, but rather brand, technology, algorithms, processes, people, and data. According to the World Intellectual Capital Initiative (WICI), intangible capital, including organizational, human, relational, and innovation capital is the basis of long-term value creation.
However, structural challenges persist:
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Lack of ownership confirmation: No legal registry or title system; assets like algorithms and influence are hard to account for.
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Inadequate valuation: No consistent methodology; financial statements use historical cost and amortization, failing to reflect market value or cash flow potential.
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Financing constraints: Banks rarely accept data, brand, or relationships as collateral.
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Limited liquidity: Intangibles are difficult to fractionalize and lack standardized instruments.
These issues lead to trapped value and resource misallocation, hampering innovation-led growth.
III. DLT and ZKP: Infrastructure for the digital age
DLT provides decentralized, immutable, and auditable infrastructure to register and circulate intangible assets:
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Title and timestamping: On-chain records confirm existence, timing, and ownership as digital property rights.
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Asset mapping: Creative works, algorithms, and data can be uniquely identified and tokenized.
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Programmable execution: Smart contracts automate transactions, revenue sharing, and pledges.
ZKP enhances this by verifying data and attributes without revealing them:
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Originality proofs for content
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Model performance validation (e.g., accuracy over a threshold)
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Regulatory compliance proofs for data
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Trustless execution without central authorities
ZKP enables confidential validation where transparency conflicts with privacy. ZK-based blockchain systems show how privacy and verifiability can coexist.
IV. Evolution of RWA: From physical to knowledge assets
Phase 1: Tangible assets
Initial RWA efforts focused on legally clear, easily valued assets such as real estate, loans, and gold.
Phase 2: Intangible assets
With maturing technologies and frameworks, RWA now includes:
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Intellectual property and content rights
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AI models and algorithmic assets
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Data assets (behavioral, medical, IOT)
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Personal reputation and social capital
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ESG performance and cultural capital
This evolution requires:
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On-chain title using DLT
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Attribute verification via ZKP
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Financing and trading venues (DeFi or CeFi)
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Legal standards and disclosure frameworks (e.g., WICI)
V. Representative use cases from IP to models, on chain
A. Copyright NFTs
NFTs were early tools for tokenizing intangible assets. Platforms now let creators link royalties and rights to tokens, enabling programmable revenue splits and fractional ownership by fans or investors. This improves creator leverage and user participation.
B. AI models as financial assets
AI models are valuable but vulnerable. With ZKP, developers can prove model performance without revealing the model itself. A typical structure includes:
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Register the model on-chain
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Use ZKP to prove capability
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Issue revenue-linked tokens
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Let investors participate in expected returns
Early algorithm marketplaces like SingularityNet and Numerai illustrate this concept.
C. On-chain data licensing and revenue sharing
Data is a key digital asset but restricted by regulation and privacy. ZKP allows proof of existence and legality without exposing raw data. This enables data analysis, licensing, and fair revenue distribution. Ocean Protocol is one example of such an infrastructure.
D. Tokenizing personal IP and influence
Influencers and creators generate immense value, but monetization was difficult. Now, reputation tokens or NFTs combined with ZKP-verified metrics allow fans and investors to participate in their value while safeguarding private information. Platforms like Lens Protocol and FANtium support this.
VI. Policy challenges and future pathways
Technology often moves ahead of regulation. DLT and ZKP unlock value, but full adoption requires legal and institutional support.
Legal recognition:
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Do NFTs represent legal ownership?
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Are smart contracts enforceable?
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How are cross-border data assets protected?
Valuation mechanisms:
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Multi-dimensional scoring (influence, returns, history)
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Independent audits
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Credit ratings for intangibles
Regulatory frameworks:
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AML and KYC compliance
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Contract and code audits
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Investor suitability and risk disclosure
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Liquidity risk management
VII. Redefining asset boundaries and future value
We believe intangible assets are the true core of value in the digital age, and RWA is the most practical path to unlock this value.
By combining DLT and ZKP with financial structuring from RWA, we can title, value, fractionalize, and trade intangible assets. This offers a structural opportunity across technology, finance, and law.
The future financial system will not just include real estate, stocks, and bonds, but also knowledge, algorithms, reputation, and traffic as full-fledged asset classes. Those who set the standards, build the platforms, and win trust early will hold the sovereignty of value in the digital age.
References
https://oceantomo.com/intangible-asset-market-value-study/
https://www.wici-global.com/aboutwici_global
https://www.ledger.com/academy/what-is-zero-knowledge-proof
https://www.rapidinnovation.io/post/top-10-blockchain-use-cases-of-zero-knowledge-proof
https://www.zeroknowledge.fm/zksync-vs-aztec-vs-mina
https://www.investax.io/blog/intellectual-property-tokenization
https://blockapps.net/blog/case-studies-successful-intellectual-property-tokenization-projects
https://www.blockchainappfactory.com/rwa-tokenization-use-cases