(CTN News) – IOTA, a global technology network, initiated a $100 million foundation in Abu Dhabi on Wednesday, with the goal of expediting the growth of its distributed ledger technology (DLT) in the Middle East.
The foundation, known as the IOTA Ecosystem DLT Foundation, marks a significant move in the blockchain space, being the first organization of its kind approved by regulators of the Abu Dhabi Global Market (ADGM).
IOTA’s co-founder and Chairman, Dominik Schiener, highlighted the foundation’s mission to facilitate the transformation of real-world assets into digital ones.
In an interview, Schiener emphasized the current opportunity to position IOTA by onboarding institutions and enabling them to work on-chain, leveraging the favorable regulatory environment in the UAE.
The foundation will be endowed with over $100 million in IOTA tokens, to be vested over the next four years.
IOTA Token Dynamics and Strategic Initiatives for Network Development and Asset Tokenization
IOTA tokens, currently trading at around $0.17, with a market capitalization of approximately $524 million, will be utilized to advance the development of the IOTA network and expedite its overall growth.
Schiener also disclosed that the funds will be directed towards the tokenization of assets, a process where ownership rights in properties or land are represented as digital tokens stored on a blockchain.
This move positions IOTA to offer digital certificates of ownership for a wide range of valuable assets.
Hamad Sayah Al Mazrouei, CEO of the Registration Authority of ADGM, expressed the UAE’s ambition to establish itself as the leading jurisdiction for the blockchain industry by welcoming IOTA to Abu Dhabi.
Despite regulatory uncertainties in Europe, where IOTA originated in 2015, the network has swiftly become a major player with existing projects and collaborations with European government authorities.
As traditional players in the crypto market face challenges, IOTA’s foundation adds a positive dimension to the sector, contributing to renewed optimism, particularly with the anticipation of regulatory approval for spot bitcoin exchange-traded funds (ETFs).