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- IOTA sets itself apart from other blockchains with its Layer 1 design and a Delegated Proof of Stake system, which boosts both scalability and security.
- In a recent exchange on X, the co-founder pointed out the project’s wins in rolling out real-world asset tokenization across East Africa.
Real-world asset (RWA) tokenization is shaping up to be one of the biggest opportunities in blockchain. Analysts predict the market could grow to a staggering $16 trillion by 2030. So what does that actually mean? In simple terms, RWA tokenization turns traditional assets, like cash, commodities, stocks, bonds, credit, artwork, or even intellectual property, into digital tokens that can be traded on the blockchain.
On X, one blockchain enthusiast, Unc, stated: “RWA tokenization companies are becoming more formidable. Tokenization was the tricky part with regulation.” That’s where IOTA comes in. Responding to the post, Dominik Schiener, IOTA’s co-founder, explained how the network is already putting RWA tokenization into practice:
This is what we are doing with IOTA. Check out our work in Africa, specifically Kenya and Rwanda. We are already tokenizing physical commodities (coffee), rare earth minerals (tantalum, etc.), and trade receivables.
In a follow-up, he added: “We’ve been active in Africa since 2017 and have large-scale deployments in Kenya, with more countries on the way.” With Africa’s vast commodity markets and IOTA’s focus on real-world use cases, it’s clear that RWA tokenization isn’t just theory anymore; it’s already happening on the ground.
IOTA’s Investments in Africa
IOTA is a next-gen distributed ledger system that runs on a directed acyclic graph (DAG) called the “Tangle”, so there’s no mining, and transactions are feeless. It’s built for high scalability and microtransactions, making it perfect for real-world use cases rather than speculative trading.
One of the drivers of IOTA’s success is the Rebased upgrade, which positions IOTA as a platform for RWA tokenization. It enables the native minting of digital tokens for assets like coffee, trade invoices, and even bonds, without transaction fees and with high scalability.
This framework supports asset-backed tokens that businesses can use for financing, collateral, and cross-border transactions.
One of IOTA’s standout projects is the Trade Logistics Information Pipeline (TLIP). By digitizing export documents and anchoring them on IOTA’s ledger, TLIP is cutting through the red tape of Africa’s export industry. In Kenya, it’s already integrated with KenTrade, the country’s single-window customs system, and is expanding data-sharing with the Kenya Ports Authority.
The result? Real-time visibility of container movements and export processes that once took weeks now happens in minutes.
Then there’s the Trade Worldwide Information Network (TWIN), a non-profit launched on May 8 with backing from organizations like the World Economic Forum, Tony Blair Institute for Global Change, TradeMark Africa, and others. TWIN is an initiative designed to serve as a global backbone for transparent, interoperable trade data, and it’s already being rolled out in Kenya and Rwanda.
To keep this momentum alive, IOTA’s Ecosystem Foundation committed $10 million in 2024 to support TradeTech innovation across the UAE and Africa. The fund supports startups, pilot projects, and accelerators focused on tokenization and real-world asset solutions.
