IOTA, the open-source blockchain developer, has announced the launch of the IOTA Ecosystem DLT Foundation in Abu Dhabi. The foundation, supported by $100 million worth of IOTA digital tokens, aims to accelerate the growth of distributed ledger technology (DLT) in the Middle East region. The company's co-founder and chairman, Dominik Schiener, highlighted the opportunity to position themselves by onboarding institutions and offering them on-chain solutions in the UAE.
Tokenizing Assets and Leading the Blockchain Industry
In addition to expanding its technology to support developments in the Middle East, the IOTA Ecosystem DLT Foundation plans to tokenize assets. The chief executive of the Registration Authority of the Abu Dhabi Global Market (ADGM), Hamad Sayah Al Mazrouei, stated that the country aims to become the leading jurisdiction for the blockchain industry. The foundation has become one of the first blockchain-focused organizations to be approved by regulators from the ADGM.
New Regulations and Opportunities for DLT Foundations
This announcement comes shortly after the ADGM introduced comprehensive regulations targeting DLT foundations, including IOTA. The regulations require compliance measures such as disclosing key figures, having a name that ends with "DLT Foundation," and establishing a council. Tokenholders will be treated as beneficiaries, and activities licensable by the ADGM are not permitted. The new framework also enables Decentralized Autonomous Organizations (DAOs) to operate legally and issue tokens to members.
