Iota Enhances Asset Tokenization with Shimmer EVM-Fireblocks Integration
Summary:
Open-source blockchain developer, Iota, has expanded its ability to meet growing institutional demand for asset tokenization by integrating its Shimmer EVM-compatible chain with Fireblocks. This move comes amidst an increase in market capitalization for tokenized real-world assets. The integration enables Fireblocks customers to custody tokenized assets on ShimmerEVM and initiate transactions directly. Iota's focus on infrastructure development for tokenization also corresponds to its distributed ledger technology foundation's growth in the Middle East.
Iota, a developer of open-source blockchain technology, has integrated its Shimmer EVM-compatible chain with Fireblocks, enhancing its capabilities to answer the growing institutional demand for asset tokenization. Data from VanEck Research highlighted that the total market capitalization for tokenized real-world assets (RWA) amounted to $342 billion in September, even amidst dwindling market conditions and industry challenges for cryptocurrencies. Iota co-founder, Dominik Schiener, mentioned that the firm is steering efforts to build infrastructure and devise solutions to match the rising need for RWA tokenization. He predicts a surge of institutional investors and financial entities publicly advocating digital assets in 2024, thanks to clear regulatory procedures and the emerging popularity of ETFs, setting the path for institutional investors to monopolize the market. Tokenization implies converting traditional financial assets, tangible or intangible, to the blockchain. This could include various assets like company stakes, real estate, commodities, and financial tools such as bonds and invoices, with the primary advantage of tokenization being enhanced asset liquidity. The ShimmerEVM is an Ethereum-compliant smart contract that is situated on the Shimmer blockchain. It functions as a proving ground for Iota, facilitating testing and development of new features and apps before they're deployed to the Iota mainnet. This integration lets Fireblocks users maintain custody of tokenized assets on ShimmerEVM and carry out transactions on the chain directly through the Fireblocks console and API. Fireblocks is a known provider of direct crypto custody and other institutional investor solutions and reports a client base of around 1,800, including distinguished financial entities like BNY Mellon and BNP Paribas. In November, Iota unveiled its distributed ledger technology (DLT) base in the Middle East to promote the quicker proliferation of decentralized tech and asset tokenization in the region. Schiener added, "Following the recent sanction and establishment of the first DLT Foundation in the UAE, we are forging ahead to tokenize RWA assets on IOTA and on Shimmer.
Published At
12/13/2023 8:00:00 PM
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