Iota Foundation aims to tap into the growing institutional demand for real-world assets tokenization. The total market capitalization for tokenized real-world assets reached $342 billion in September. Iota addresses this demand by integrating ShimmerEVM with Fireblocks, targeting large institutional investors and financial institutions.
Iota, the open-source blockchain developer, is enhancing its infrastructure to cater to the rising demand for tokenized real-world assets (RWA). Despite industry challenges, data from VanEck Research highlights that RWA’s total market capitalization reached $342 billion in September.
Iota’s Strategic Move with ShimmerEVM and Fireblocks
Iota’s ShimmerEVM, an Ethereum-compliant smart contract on the Shimmer blockchain, facilitates testing and development for new features before integration into the Iota mainnet. The integration with Fireblocks allows customers to custody tokenized assets on ShimmerEVM, providing seamless transactions directly from the Fireblocks console and API.
Tokenization involves bringing traditional financial assets, tangible or intangible, to the blockchain. This process enhances asset liquidity, covering a range of assets like real estate, commodities, shares, bonds, and more.
Fireblocks and Institutional Solutions
Fireblocks, with 1,800 clients, including major institutions like BNY Mellon and BNP Paribas, offers direct crypto custody and solutions for institutional investors. The integration enables Fireblocks clients to custody tokenized assets and execute transactions efficiently on ShimmerEVM.
Iota’s Vision for Institutional Dominance
Total Market Capitalization of RWA’s. Source: VanEc Research.
Dominik Schiener, Iota co-founder, foresees strong support for digital assets from large institutional investors in 2024. Clear regulations and institutional backing, along with the potential advent of ETFs, position institutional investors to become dominant market participants in the crypto space.
Regional Growth and Asset Tokenization
In November, Iota established its distributed ledger technology (DLT) foundation in the Middle East to accelerate the growth of decentralized technologies and asset tokenization. The foundation’s recent registration in the UAE signifies a commitment to tokenize RWA assets on Iota and Shimmer.
Iota’s integration with Fireblocks aligns with its strategic vision to meet the increasing demand for asset tokenization, catering specifically to institutional investors and financial institutions in the evolving blockchain landscape.