- IOTA is distinguished from layer 1 design and other blockchains with delegated, delegated stake systems that increase both scalability and security.
- In a recent exchange in X, the co-founder pointed to the project’s victory by deploying real-world asset tokenization across East Africa.
Real-world Asset (RWA) tokenization is becoming one of the biggest opportunities for blockchain. Analysts predict that the market could grow to an astounding $16 trillion by 2030. So, what does that actually mean? Simply put, RWA tokenization transforms traditional assets such as cash, commodities, stocks, bonds, credits, artwork, and even intellectual property into digital tokens that can be traded on the blockchain.
In x, one blockchain enthusiast, unc, states: “RWA tokenization companies are becoming more frightening. Tokenization has been a difficult part of regulation.” That’s where IOTA comes into play. In response to the post, IOTA co-founder Dominik Schiener explained that the network is already practicing RWA tokenization.
This is what we do at IOTA. Check out our work in Africa, especially Kenya and Rwanda. We already tokenize physical goods (coffee), rare earth minerals (such as tantalum), and trade receivables.
In a follow-up, he added: “We have been active in Africa since 2017, have a large deployment in Kenya, and there are more countries.” With our focus on the vast African commodity market and real-world use cases, it is clear that RWA tokenization is no longer just a theory. It’s already happening on the ground.
Iota’s investment in Africa
IOTA is a next-generation distributed ledger system run on directional circular graphs (DAGs) called “Tangles,” so there is no mining and transactional feeling. Built for high scalability and microtransactions, it’s perfect for real use cases rather than speculative trading.
One factor in IOTA’s success is the Rebased upgrade, positioning IOTA as a platform for RWA tokenization. This allows for native mint of digital tokens of assets such as coffee, trade invoices and even bonds with high scalability without trading fees.
The framework supports asset-backed tokens that companies can use for funding, collateral, and cross-border transactions.
One of IOTA’s outstanding projects is the Trade Logistics Information Pipeline (TLIP). By digitizing export documents and securing them to IOTA ledgers, TLIP is sweeping through the red tape of the African export industry. Kenya has already been integrated with the country’s single window customs system, Kentrade, and is expanding the Trade Worldwide Information Network (Twin), a nonprofit organization supported by organizations such as the World Economic Forum, the Tony Blair Institute for the Tony Blair Institute, and Trademark Africa on May 8th. The Twin is an initiative designed to serve as the global backbone of transparent, interoperable trade data, already deployed in Kenya and Rwanda.
To keep this momentum alive, IOTA’s Ecosystem Foundation committed $10 million in 2024 to support Tradetech innovations across the UAE and Africa. The fund supports startups, pilot projects and accelerators that focus on tokenization and real-world asset solutions.
