IOTA, the open-source blockchain developer, has announced the establishment of the IOTA Ecosystem DLT Foundation in Abu Dhabi, marking a strategic move to drive the growth of its distributed ledger technology (DLT) in the Middle East. This initiative is particularly noteworthy as it has received regulatory approval from authorities in Abu Dhabi, making it the first foundation of its kind to achieve such recognition following the enactment of new laws earlier in the month.
To propel the expansion of its DLT, the foundation is backed by $100 million worth of IOTA digital tokens, which will be vested over the next four years. The primary objective is to foster the rapid advancement of DLT and facilitate the conversion of real-world assets into digital equivalents, as emphasized by Dominik Schiener, the co-founder, and chairman of IOTA:
In addition to enhancing its technological footprint to support developments in the Middle East, the foundation will embark on asset “tokenization.”
Hamad Sayah Al Mazrouei, the CEO of the Registration Authority of the Abu Dhabi Global Market (ADGM), articulated the country’s ambition to become a frontrunner in the blockchain industry:
This milestone makes the IOTA Ecosystem DLT Foundation one of the pioneer blockchain-focused organizations to secure approval from regulators at the ADGM. The development aligns with recent comprehensive regulations introduced on November 2, targeting DLT foundations like IOTA. These regulations provide a framework for organizations to explore DLT opportunities in the region.
Compliance involves disclosing key figures’ names, adopting a name ending with “DLT Foundation,” forming a council with two to 16 members, treating tokenholders as beneficiaries, and refraining from engaging in activities licensable by the ADGM. Additionally, the regulatory framework facilitates the legal operation of DAOs and the issuance of tokens to their members.