How We Built Tokenization 2.0 on Plasma

TL;DR: We've built a contract-centric RWA architecture on Plasma that delivers L1 security with L2 speed, enforces compliance at opcode level, and makes real-world assets truly liquid without compromising regulatory requirements. Here's exactly how it works.

The Problem with RWA Tokenization Today

Real-world asset tokenization has a fundamental problem: the industry forces you to choose between security, speed, and compliance.

Traditional L1 tokenization gives you security and compliance but murders your user experience with high gas costs and slow settlement. L2 solutions give you speed but often compromise on compliance guarantees or force you to trust centralized operators. Oracle-based valuation systems ask you to trust off-chain data without cryptographic proof.

None of these approaches work for institutional-grade RWAs.

When you're tokenizing a $50M real estate portfolio or a construction project with milestone-based payouts, you can't compromise on any dimension. Compliance isn't optional. Speed isn't negotiable. And security is non-negotiable.

That's why we built Briq on Plasma.

Our Architecture: Six Pillars of Tokenization 2.0

1. L1 Canonical Layer: The Single Source of Truth

Every RWA on Briq starts life as an L1 canonical token built on an ERC-1400-like standard. This isn't just another token contract—it's a sophisticated compliance primitive with partitions, transfer hooks, and force-transfer capabilities baked in.

Here's what makes it special:

• Canonical bridge escrow locks L1 supply and mints the Plasma representation 1:1

• Hard supply invariant: Plasma supply can never exceed L1 escrowed amount

• Final NAV acceptance: All valuation updates must be proven on L1 before recognition

• Dispute and exit games: If anything goes wrong on Plasma, holders can always exit to L1

Think of L1 as the court of final appeal. Every critical state transition—NAV updates, compliance rule changes, supply adjustments—must be validated here. This gives institutions the security guarantee they need.

2. Plasma High-Velocity Layer: The Fast Lane

While L1 provides security, Plasma delivers the speed that makes RWAs tradeable.

On Plasma, users experience:

• Instant settlement: Trades execute at opcode speed, not block speed

• Same policy bytecode: Compliance rules are deterministic across both layers

• Periodic state roots: Plasma syncs state back to L1 for finality

• Provable exits: Any holder can exit to L1 with a minimal UTXO or balance proof

The magic is that compliance enforcement happens before the transaction, not after. Every transfer calls the same policy hook that exists on L1, so there's zero compliance drift between layers.

Users get CEX-like speed. Regulators get DEX-like transparency.

3. Compliance Engine: Policy as Pre-State

This is where Briq gets interesting. Instead of checking compliance after the fact (or worse, trusting someone to check it), we enforce it at the protocol layer before any transfer can execute.

Every transfer on Briq passes through an onBeforeTransfer hook that validates:

KYC/AML Registry

• Merkle or bitmap-based allowlist synced from L1

• Both sender and recipient must be whitelisted for the specific partition

Jurisdiction & Caps

• Partition tags like EU_QIB, US_Accredited, ASIA_Qualified

• Per-address holding caps enforced at the token level

• Cross-border restrictions built into the protocol

Cooldown/Lockups

• Vesting partitions with time-locked transfers

• Transfer restrictions that unlock programmatically

If any check fails, the transaction reverts before touching the ledger. No partial states. No compliance gaps. No room for human error.

This is compliance-as-code, not compliance-as-promise.

4. Oracle Attestation: Trust, But Verify

Real-world assets need real-world data. Property valuations change. Construction milestones get hit. Rental income flows in.

Traditional tokenization platforms handle this with trusted oracles or admin keys. We do it differently.

Signed NAV payloads arrive from approved oracles (property appraisers, auditors, IoT sensors) with ed25519 or secp256k1 signatures. Plasma contracts verify these signatures on-chain and update the NAV State Machine.

But here's the critical part: L1 doesn't accept the new NAV until the Plasma block containing it is included and proven. No "fast mint" without finality. No trust required.

For construction projects, milestone attestations work the same way: "Milestone 3 reached: 40% completion" arrives as a signed payload, gets verified on Plasma, and only becomes canonical when the proof hits L1.

The result? Oracle data is cryptographically bound to state roots before anyone can act on it.

5. Gas-Efficient Payouts: Distribution Without Destruction

Paying rent to 10,000 tokenholders on L1 would cost more in gas than the rent itself. This is why most RWA platforms centralize payouts or force users to claim manually.

We solved this with Merkle Streams.

Instead of sending N transactions, we:

• Generate one Merkle root per payout epoch

• Publish the root on Plasma

• Let holders claim with a proof

Unclaimed amounts roll over. A single L1 checkpoint can settle thousands of Plasma claims if users want to exit with their distributions.

Result: Monthly rent distributions cost one hash instead of one transaction per holder.

6. Compliant Liquidity: AMMs That Respect Rules

Liquidity shouldn't mean throwing compliance out the window.

Our Plasma-based AMMs integrate the same policy hook as transfers. Before any swap executes, both sides get checked:

• Is the buyer whitelisted for this partition?

• Does the seller meet cooldown requirements?

• Would this trade violate holding caps?

If either side fails, the swap reverts pre-execution.

LP tokens inherit the partition tag of the underlying RWA partition, so you can't accidentally create pools that mix EU_QIB tokens with US_Accredited tokens.

The result: You get DeFi-level liquidity with RegTech-level compliance.

How It Actually Works: The Transfer Function

Let's look at what happens when someone transfers a Briq RWA token:

function transfer(address to, uint256 amt, bytes32 part) public {
    // 1) Compliance gate
    Policy memory p = policyFor(part);
    require(kyc.isWhitelisted(msg.sender, part) &&
            kyc.isWhitelisted(to, part), "KYC");
    require(!locks.isLocked(msg.sender, part), "Lock");
    require(caps.canHold(to, part, amt), "Cap");

    // 2) Partition-aware accounting
    _debit(msg.sender, part, amt);
    _credit(to, part, amt);

    // 3) Emit NAV-aware event for streaming payouts
    emit TransferPartition(part, msg.sender, to, amt, nav.current());
}

On Plasma: Same bytecode, but reads KYC/locks/caps from snapshotted registries updated by L1→Plasma messages.

On L1: Bridge escrow, canonical supply, dispute games, and final NAV acceptance.

Every rule is enforced deterministically. Every state transition is provable. Every exit is guaranteed.

Why This Is "Tokenization 2.0"

Traditional tokenization (1.0) had to choose:

• Centralized and fast (trust the operator)

• Decentralized and slow (pay the gas)

• Compliant and illiquid (no secondary markets)

Briq gives you all three:

Single source of truth (L1), single experience (Plasma)

• Supply and legality live on L1

• Speed and UX live on Plasma

• Users never see the complexity

Compliance is a pre-state check, not an off-chain promise

• Every transfer hits the policy hook

• No trust required, no admin keys

• Rules are enforced by math, not administrators

Attested valuations are cryptographically bound to state

• NAV updates must be proven before L1 recognizes them

• Oracle signatures are verified on-chain

• No "fast mint" without finality

Gas-efficient distribution via Merkle Streams

• One hash per epoch, not N transactions

• Single L1 checkpoint settles thousands of claims

• Distribution costs scale with data, not users

Provable exits ensure users can always redeem to L1

• If Plasma halts, exit with a minimal proof

• Same compliance rules apply to exits

• L1 is always the safety net

What This Unlocks

With this architecture, we can tokenize assets that were previously impossible:

Fractional real estate with monthly rent distributions to thousands of holders, settled for pennies in gas.

Construction projects with milestone-based unlocks, where progress attestations are cryptographically verified before capital releases.

Revenue-sharing agreements where payments stream to tokenholders continuously, claimed on-demand with a Merkle proof.

Cross-border compliant tokens where EU and US partitions trade on the same AMM but never violate jurisdictional rules.

Institutional-grade RWAs where compliance is enforced by code, not compliance officers.

Building the Future of Capital Markets

Tokenization isn't about putting JPEGs on-chain. It's about rebuilding capital markets on cryptographic rails—where compliance is code, where settlement is instant, where ownership is provable, and where liquidity is a right, not a privilege.

Briq is how we get there.

Briq: Real-world assets. Plasma speed. L1 security. Built for institutions, designed for everyone.