CompaniesEditor ChoicePolicies & Regulations

IOTA’s $100 Million DLT ADGM Foundation: Catalyzing Blockchain Growth in the Middle East

In a groundbreaking move, the global technology network IOTA announced the launch of a $100-million foundation in Abu Dhabi. This strategic initiative, named the IOTA Ecosystem DLT Foundation, aims to accelerate the growth of its distributed ledger technology (DLT) in the Middle East. The foundation, approved by regulators at the Abu Dhabi Global Market (ADGM) , signifies a pivotal step in establishing the UAE as a prominent hub for the blockchain industry.

Since its founding in 2015, IOTA has become a fast-growing global network. The foundation in Abu Dhabi is poised to play a crucial role in reshaping the digital landscape. With a focus on converting real-world assets into digital ones, the foundation will utilize IOTA tokens to fund investments, totaling over $100 million. This substantial financial commitment will be vested over the next four years, signaling a long-term dedication to the growth and development of the IOTA network.

Dominik Schiener, the co-founder, and Chairman of IOTA emphasized to Reuters the opportune moment to position IOTA in the market, especially in the UAE, given the current reshuffling of the industry. The foundation’s approval by ADGM positions it as the first blockchain-focused organization to receive regulatory approval in the region.

ADGM’s Regulatory Framework and IOTA’s Global Expansion

The launch of the IOTA Ecosystem DLT Foundation aligns seamlessly with regulatory advancements in Abu Dhabi. The ADGM, through the Registration Authority (RA), introduced the Distributed Ledger Technology (DLT) Foundations Regulations 2023. This legislative structure provides a comprehensive framework tailored to the unique needs of the blockchain industry, including DLT foundations and decentralized autonomous organizations (DAOs).

The regulations set the stage for organizing and promoting governance within the digital asset sector. They require DLT Foundations to undergo registration with the ADGM Registrar, meeting specific criteria such as having a compliant Charter, initial assets of at least USD 100,000, and a designated Guardian. The regulatory framework prohibits DLT Foundations from engaging in activities requiring a Financial Services Permission, ensuring a secure and transparent environment.

The significance of these regulations extends beyond local implications, as they contribute to ADGM’s global standing as a pioneer in digital asset regulation. Coupled with the establishment of the IOTA foundation in Abu Dhabi, they position the UAE as a leading jurisdiction for the blockchain industry, as stressed by Hamad Sayah Al Mazrouei, Chief Executive Officer of the ADGM Registration Authority (RA).

The regulatory developments in ADGM, as outlined in our earlier articles on Unlock Blockchain, serve as a foundation for the IOTA Ecosystem DLT Foundation’s operations. The Distributed Ledger Technology Foundations Regulations 2023 provide a robust framework for the establishment and operation of DLT Foundations within ADGM.

IOTA’s commitment to aligning with these regulations signifies a strategic move toward fostering collaboration with regulators, business leaders, and government entities in the UAE. The establishment of an additional headquarters in Abu Dhabi positions IOTA at the forefront of the global DLT landscape, with the foundation dedicated to supporting and enhancing the crypto community on a global scale.

In essence, the partnership between ADGM and IOTA in Abu Dhabi signals a pivotal moment in blockchain development and regulatory progress, highlighting the UAE’s commitment to becoming a tech innovation hub. This collaboration sets the stage for advancing digital asset technology and its regulatory landscape.

News Desk

Unlock News Desk, is a group of Blockchain and Crypto enthusiastic young people, working to keep Unlock readers up to date with the industry news. Connect with the team via email: info(@)

Related Articles

Back to top button