IOTA utilizes blockchain assessment from Zokyo for UAE ADGM registration

IOTA utilizes blockchain assessment from Zokyo for UAE ADGM registration

IOTA utilized the expertise of Zokyo, a blockchain security solutions provider to carry an assessment of IOTA’s white paper and Token economy paper in alignment to industry benchmarks and ADGM regulatory requirements for IOTA’s registration as the first DLT Foundation in ADGM.

 Zokyo Econ Lab a new division of Zokyo is dedicated to assisting blockchain companies in optimizing their token economics, aligning them with both industry and regulatory standards across various jurisdictions. Zokyo Econ Lab specializes in driving exceptional growth at the forefront of blockchain innovation, including ecosystems, protocols, foundations, and DAOs.

Zokyo Econ Lab’s first major undertaking in regulatory compliance involved the successful registration of IOTA, a renowned blockchain protocol, under the Abu Dhabi Global Market DLT Foundations 2023 regulations.

The IOTA audit assessed the alignment of IOTA’s White Paper and Token Economy paper with regulatory requirements and recognized industry benchmarks for their content. This included a proper market, product, and business overview; identification of target users and services provided; explaining reasons for tokenization; token utilities; tokenized ecosystem participants breakdown; usage of the token and it’s value for users; incentive policy, and more.

With expertise in mathematical analysis, Zokyo Econ Lab designs comprehensive token models to maximize value and ensure sustainable growth. By scrutinizing distribution, utility, governance, and incentives, Zokyo Econ Lab identifies and capitalizes on optimization opportunities. It aims to craft robust ecosystems that drive stakeholder engagement and project resilience. This proactive approach positions blockchain projects at the forefront of the industry, ready to adapt and thrive in a rapidly evolving digital economy.

The audit process was structured in two phases: an initial report to identify areas of concern and recommend improvements, followed by a collaborative workshop with the IOTA team. The final report, post-remediation, confirmed IOTA’s compliance with the ADGM DLT Foundations 2023 regulations.

Dominik Schiener, Co-Founder and Chairman of the IOTA Foundation, said: “Zokyo was an instrumental partner in helping to navigate the new regulatory framework of the Abu Dhabi Global Market (ADGM) in the United Arab Emirates. Zokyo’s expertise and thorough processes helped a great deal in successfully getting the IOTA Ecosystem DLT Foundation registered as the first foundation under the new DLT Foundations Regulations, enabling us to start our next chapter of global expansion.”

Hartej Sawhney, Founder and CEO of Zokyo, added, “The inauguration of Zokyo Econ Lab marks a pivotal moment in demystifying the complex realm of both blockchain regulation and token modeling. Our commitment to offering bespoke compliance solutions extends beyond ADGM, as we support blockchain enterprises in dozens of jurisdictions.”

Zokyo’s collaboration with VAF Compliance, a consultancy company specializing in regulatory compliance within the blockchain and virtual asset sector, further underscores the lab’s dedication to providing superior compliance services.

South Korean WeMade game developer and DIFC Innovation hub to build WEMIX Play Web3 community

South Korean WeMade game developer and DIFC Innovation hub to build WEMIX Play Web3 community

South Korean game developer, Wemade, and UAE DIFC (Dubai International Financial Zone), Innovation Hub partner to build WEMIX Play web3 gaming community to support Dubai Program for Gaming 2033.

The Wemade-DIFC Innovation Hub collaboration plans to focus on core initiatives, including establishing WEMIX PLAY Center within the DIFC Innovation Hub for WEMIX PLAY. Wemade and DIFC Innovation hub will onboard game companies and facilitate the raising of $100 million Web3 gaming fund to  support the developers, studios and entrepreneurs.

Dubai is a leading business hub with advanced financial services and policies for fostering economic growth, investor attraction, blockchain, and cryptocurrency. Aided by DIFC Innovation Hub, Wemade aims to maintain close communication with UAE crypto-regulating bodies for making the Middle East business strategy as per up-to-date trends.

Wemade is also working on an application for Crypto Token Recognition from the Dubai Financial Services Authority, the DIFC’s Financial Regulator. Tokens conferred with this status will allow financial institutions in the DIFC to carry out transactions with them, to be used by over 4,900 companies in the special economic zone.

UAE Tech Innovation Institute launches Blockchain carbon tracking & trading platform at COP28

UAE Tech Innovation Institute launches Blockchain carbon tracking & trading platform at COP28

UAE Technology Innovation Institute (TII), a leading global scientific research center and the applied research pillar of Abu Dhabi’s Advanced Technology Research Council (ATRC), has launched a blockchain-powered carbon tracking and trading platform, which will facilitate international trade in carbon tokens. Verifiable and trustworthy carbon trading can play a vital role in driving green investment and accelerating the road to net zero emissions.

TII’s Cryptography Research Center (CRC) designed the new platform that aligns with both the UAE Vision 2021’s aim of fast-tracking a sustainable environment and achieving net zero as well as the goal of COP28 to “accelerate a transition that puts our economies on the path toward a new low-carbon, high-growth, sustainable economic model in a way that is both transformational and just. The platform will support the global carbon market and allow better tracking of carbon emissions and carbon emission trading. Using a lightweight, efficient blockchain implementation that is not computationally wasteful, as opposed to existing blockchain projects, tracking and trading activities can be verified publicly at little to no cost, either in carbon emissions or other resources. 

Dr. Ray O. Johnson, CEO, Technology Innovation Institute, said, “We are proud to announce this digitized tracking and trading platform at COP28, which represents the UAE’s drive to become a technology and innovation powerhouse and its commitment to leading the world’s climate action agenda. The UAE has provided the tool to ensure that trading can be done in confidence while mitigating human impact and maximizing the benefits to the environment.”

While other organizations are also developing digital carbon trading platforms, TII is the first to implement a blockchain-enabled Proof of Concept as it continues to prepare the platform for global trading. The platform will accurately track carbon emissions by registering the emissions from any worldwide public or private organization. Auditors can then establish a chain of trust from emissions from capture to storage to trading. These audited transactions can be made transparent while keeping intact the privacy of the user – emitter, buyer, or third party. 

TII’s new platform will allow for the creation of tokens that represent a quantity of carbon dioxide that has been removed from the environment. The token can then be stored and traded transparently and securely. The trade-in tokens will create incentives to drive investment in green projects such as forestation and carbon capture and allow entities to offset hard-to-decarbonize activities – further incentivizing green investment. Specifically, blockchain can track and trace products throughout their supply chain journey, enable peer-to-peer energy trading, and create a transparent and immutable ledger of waste disposal and recycling activities. It can also help track water and forestry management efforts.

The establishment of a global carbon credit market was approved at COP21 in Paris in 2015 and a supervisory body was set up to oversee its regulation. The entity aims to finalize its recommendations for approval during COP28, which will trigger a more robust international carbon market than currently exists.

By employing the use of PKI and advanced consensus algorithms, this blockchain solution ensures secure transactions without the resource-intensive proof of work algorithms, resulting in a seamless and eco-friendly network where the decentralized transactions can unfold minimal transactional impact.

Dr. Najwa Aaraj, Chief Researcher at TII’s Cryptography Research Center (CRC), said: “This tracking and trading platform was designed by our talented team of international experts and allows large numbers of verified users to carry out carbon tracking and trading transactions in confidence. It protects the integrity of the transactions and the privacy of the user while ensuring auditability and transparency, making it a perfect tool for a new era of confident carbon trading.”

The TII blockchain offers a verifiable multi-tenant, multi-transaction solution with public key infrastructure (PKI) permissioning built into its core design in addition to a high-security cryptographic stack. The blockchain features a consensus algorithm and a smart contract platform which are designed as pluggable components with integrated practical complex fault tolerance. The permission-based blockchain uses a lightweight, efficient implementation that makes it easy and affordable to transact, track, and trade.

R3 Blockchain Bolsters its presence in GCC with relocation of its Head of partnerships to Abu Dhabi

R3 Blockchain Bolsters its presence in GCC with relocation of its Head of partnerships to Abu Dhabi

R3 Blockchain is establishing itself more in the GCC and MENA region, with Bryan D’Souza announcing his move to Abu Dhabi as Business Development and Partnerships Manager in the Middle East.

As D’Souza noted on Linkedin, “I’m delighted to finally announce my move to Abu Dhabi with R3, where I will lead Business Development and Partnerships in the Middle East. After extensive travel between London and the GCC, the prospect of making Abu Dhabi my home is thrilling as I embark on this exciting new chapter.

He adds that he is excited to collaborate with GCC’s thriving financial services ecosystem. According to D’Souza, the GCC stands out as a forward-thinking hub of progress due to its dynamic blend of tradition and innovation, as well as a remarkable ability to execute on transformation.

He will be working to flourish digital economies and align with national visions of Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Oman and Jordan, helping these countries to realize their financial sector developments including banking and capital markets transformation.

R3 will be working with Central banks, FMIs, commercial banks, FinTech, providing practical groundbreaking solutions for digital assets tokenization and regulated digital currencies, including CBDCs.

Last month Bryan D’Souza discussed his fruitful visit to Kuwait.

R3 has been a strong proponent in the Middle East and GCC region working with governments and enterprise on several projects, most prominently the CBDC projects in Saudi Arabia and UAE.

In addition the Qatar Financial Centre Authority and R3 signed an MOU to develop and grow Qatar’s fintech industry using technologies such as DLT (Distributed Ledger Technology) back in April 2023.

D’Souza stated after his visit to Kuwait, “I am thrilled to have experienced my first trip to Kuwait over the last couple of days as part of a mini GCC tour. I am grateful for the warm welcome from our great partners and potential clients. The hospitality of the Kuwaiti people left a lasting impression; warm, friendly, and eager to collaborate.”

He added, “Exciting opportunities ahead and looking forward to returning back to Kuwait soon!”

Paxos secures in principle approval from Abu Dhabi ADGM for stablecoins, crypto brokerage and custody

Paxos secures in principle approval from Abu Dhabi ADGM for stablecoins, crypto brokerage and custody

Paxos,, a regulated blockchain & tokenization infrastructure platform has secured the in-principle approvals (IPAs) of the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) for the necessary Financial Services Permissions to issue US dollar and other currency-backed stablecoins, as well as to offer crypto-brokerage and custody services from two regulated ADGM entities. Upon receiving full approval, Paxos will continue to expand the global footprint of their regulated USD-backed stablecoins.

Stablecoins issued with prudential oversight from established and reputable regulators represent a significant step towards democratizing access to commerce and financial services. Paxos is committed to integrity and transparency in its operations and the company will only issue tokens that are subject to oversight by prudential regulators. By also securing oversight for its custody and digital asset infrastructure solutions, Paxos services that are provided out of the ADGM will be comprehensively regulated by the FSRA.

As per the press release,this milestone solidifies Paxos’ position as the most comprehensively regulated blockchain platform in the world, meeting the highest operating standards in New York, Singapore and the ADGM.

Walter Hessert, Paxos Head of Strategy, commented, “Blockchain technology is revolutionizing the global financial system to be more open, secure and innovative. Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services. Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks. Paxos is unique in the industry for this approach and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner.”

By leveraging blockchain technology, Paxos aims to open the financial system to everyone, creating more access and freedom for billions of people around the world. As Paxos continues to lead the way in digital asset innovation, the company remains committed to its mission of building a more inclusive and accessible financial future.

UAE based Aurus joins forces with Authic Labs introducing the first Gold-Backed NFTs

UAE based Aurus joins forces with Authic Labs introducing the first Gold-Backed NFTs

UAE based Aurus, pioneers in the tokenization of precious metals, and Authic Labs, a leader in Web3 customer loyalty solutions, have partnered to utilize blockchain technology for precious metals including gold with the first Gold backed NFTs.

This partnership opens new avenues for Real World Assets (RWAs) in the realm of digital collectibles (NFTs).

This partnership seeks to harness each company’s strengths, with several initiatives already underway, including gold-backed NFTs and blockchain-powered loyalty programs. The initiative aims to offer brands the opportunity to engage their audiences with digital collectibles, backed by the real-world value of physical gold. These NFTs, redeemable both digitally and physically, introduce groundbreaking possibilities for traditional companies that have been hesitant to launch their own collections.

By linking NFTs to gold, brands can set a stable price floor for their collectibles. This approach not only protects their brand and community from potential market downturns but also introduces new dimensions of utility.

Authic Labs is implementing tGOLD as a tool for loyalty rewards on their platform. Aurus will be integrating the Authic Labs interactive DApp on its platform, enabling users to engage in a variety of functionalities. These include minting and burning tGOLD tokens into NFTs, participating in staking, governance and DeFi, among other features.

Improving the practical uses of tokenized precious metals during our combined efforts will greatly benefit AurusX (AX), the Aurus ecosystem token. AurusX tokens can be staked to claim monthly rewards in tGOLD, tSILVER, and tPLATINUM, as well as vote on ecosystem proposals. These rewards are generated from the various transactions that occur within the Aurus ecosystem, including NFT mintings. AurusX is traded on several venues.

Wouter Kloosterman, CEO of Authic Labs, expressed enthusiasm, “Our partnership with Aurus marks a new era where Web3 technology and real-world precious metals intersect. Integrating cutting-edge technology with traditional assets sets a new standard for value and utility in the digital collectables space.”

Mark Gesterkamp, CCO of Aurus, added, “We are very excited about our collaboration with Authic Labs, which promises to bolster our presence in the NFT space. Our conviction is that brand engagements will onboard the next mass wave of users to crypto. Adding the value of gold to digital collectibles will redefine its utility and improve overall user experiences.”

Genesis Technologies joins QFC digital assets Lab for Blockchain use cases

Genesis Technologies joins QFC digital assets Lab for Blockchain use cases

Henk Jan Hoogendoorn has confirmed that Qatar Genesis Technologies, a Qatar University tech spinoff is working with Qatar Financial Center Authority on possible use cases in their digital assets labs.

Lebanese-Canadian national Mazen El Masri, Co-Founder and CEO of Genesis Technologies, the tech company which developed Maxya, is working with QFC digital assets labs on several blockchain use cases.

As per the post the possible use case could include tokenization, security tokes and fractional ownership.

On Sunday October 29th, Qatar announced one of the biggest digital assets initiatives in the country and the GCC region, the Qatar Innovation Dome for digital assets. As per the live event keynotes, the digital assets lab will develop tokenization platforms and ecosystems for everything that has value whether tangible assets or intangible assets including real estate assets, securities, Sukuk, bonds and others in the future utilizing DLT ( distributed ledger technologies), blockchain, and smart contracts.

Qatar Financial Centre Authority (QFCA) signed MOUs with Blockchain solution provider R3 and Blockchain SettleMint platform. The agreement with Settlemint will also as with R3 work on Blockchain and digital asset initiatives in the financial sector in the digital assets lab.

Taurus opens UAE based Middle East office as more financial and non-financial entities sign up for digital asset and custodial services

Taurus opens UAE based Middle East office as more financial and non-financial entities sign up for digital asset and custodial services

Taurus SA, a FINMA-regulated Swiss institutional-grade digital asset infrastructure provider, has expanded its operations into the Middle East to serve its growing client base in the region. Taurus will service the GCC and MENA region, including KSA, Qatar and even Turkey through its Dubai UAE office.

Founded in 2018Taurus SA, a Swiss company provides enterprise-grade digital asset infrastructure to issue, custody and trade any digital assets: cryptocurrencies, tokenized assets, NFTs and digital currencies.

Managing Director, Bashir Kazour, leads Taurus’ new UAE office based in the DIFC in Dubai. M. Kazour brings more than 20 years of retail, capital markets and technology experience gained at Royal Bank of Canada, Standard Chartered and FIS, a leading banking and payment technology provider. Over the last decade, he collaborated closely with a diverse client base ranging from sovereign wealth funds and central banks to brokers and family offices.

“I am excited to lead Taurus’ efforts and build a winning franchise in the Middle East, a region known for its rapid adoption of blockchain technology and digital assets,” said Kazour. “Taurus is well-known for its unique custody and tokenization capabilities serving banking clients and large enterprises, which aligns perfectly with the needs of the region. We’ve already started interacting closely with regulators, central banks and clients and I’m looking forward to delivering cutting-edge and compliant solutions to the market.”

Speaking to LaraontheBlock on whether Taurus requires regulation by VARA, Bashir Kazour, Managing Director at Taurus SA explained, “Taurus does not need a regularity license in the UAE as we solely focus on providing the digital asset infrastructure to our clients in the region. To make it simple, Taurus is a technology provider, equipping banks and corporates, with a platform to manage any digital asset. The financial services activity is regulated by the Swiss FINMA and is not promoted outside of Switzerland.”

Taurus opened an office in DIFC Dubai because the company has already signed up some large financial institutions according to Kazour. He adds, “We are also in late stage discussions with several other financial and non-financial institutions in the Middle East region. The region is known for its rapid adoption of blockchain technology and digital assets driven by the regulatory clarity already provided through VARA, ADGM, RAK DAO initiatives, fostering innovation.”

As such Kazour reaffirms that the opening of the office in the UAE is to support this growing demand in the region for both custodial and tokenization solutions.

The office according to Kazour will serve the full Middle East region, including Qatar, KSA but also Turkey. He adds, “ We also have plans to expand to other countries as well.”

Taurus has already consolidated its European leadership position as the preferred digital asset infrastructure provider for banks and corporates, building on its Swiss market leadership with more than 60% market share. Among others, Taurus has recently announced a partnership with Deutsche Bank as well as CACEIS, one of the largest global custodians. Taurus also closed its $65 million Series B funding round last February with strategic investors including Arab Bank Switzerland, Credit Suisse, and Pictet.

UAE Gold tokenization pioneers applaud HSBC gold tokenization initiative furthering growth

UAE Gold tokenization pioneers applaud HSBC gold tokenization initiative furthering growth

Recently HSBC announced that it would be tokenizing physical gold using Blockchain technology. The tokenized gold stored in HSBC London Bank vaults, will offer tokens that represent 0.001 troy ounce traded on HSBC Evolve platform to institutional investors, with UAE Gold tokenization pioneers applauding this effort and believe this will grow the precious metal tokenization sector further.

Mark Williamson, global head of FX and commodities partnerships and propositions, confirmed the launch of the platform in a Bloomberg interview.

Gold has become a safe haven for many investors and this has also been pushed by the demand for real world tokenization solutions.

The advanced platform creates a ‘digital twin’ representing loco London gold, which facilitates trade through the HSBC Evolve platform or an API. This innovation generates a permissioned digital representation of clients’ physical gold holdings, which is integrated into HSBC’s operational infrastructure. The system enables efficient tracking of allocated and unallocated gold positions corresponding with physical holdings.

Richard Bibbey, HSBC’s Global Head of FX, EM rates and Commodities, said: “As one of the earliest adopters of DLT, we are pleased to reinforce our leadership position in the gold market by tokenizing physical gold. We continue to pave the way for improving the post-trade market infrastructure of capital markets.”

Apart from facilitating potential fractionalization of loco London gold bars and direct retail investor participation, the platform also allows clients to view their tokenized gold trades.

John O’Neill, Global Head of Digital Assets Strategy, Markets and Securities Services, HSBC, said: “Tokenising physical gold represents a further advance in HSBC’s overall digital assets strategy. In addition to demand for native digital assets, we are seeing appetite for tokenisation solutions that can maintain a link to specific real-world use cases, such as gold. Our approach to gold tokenisation complements HSBC Orion, and is part of our commitment to creating a world-leading set of digital asset capabilities to best serve the needs of our clients.”

While the tokenized gold market is primarily dominated by Tether Gold (AUT) and PAX Gold (PAXG), both having market capitalizations around $490 million and $480 million, respectively, there are several companies based out of UAE who are also offering gold tokenization solutions.

LaraontheBlock spoke with tokenized gold experts in UAE to view how this will help tokenization of precious metals and their thoughts on this.

Navin Dsouza Co-Founder & CEO at UAE based Comtech Gold told LaraontheBlock, “This is really good news for the Gold Tokenization industry. With Global Banks like HSBC offering Tokenized Gold it reemphasizes the importance of blockchain and digitalization in Gold along with the need for De-Dollarization in the current era of high inflation.”

He adds,” Comtech has the complete infrastructure along with the Governance framework with DMCC (Dubai Multi Commodities Center) to offer Gold Tokenization product to any financial institutions who want to offer Tokenized Gold to its customers in a form of Comtech white labeled solution. We will see many players and banks joining the Tokenization race because of the strong use case benefit to the Industry.”

Ahmed Bin Sulayem Executive Chairman and Chief Executive Officer of DMCC explained, “As a long-standing advocate for gold tokenization, HSBC’s entry to blockchain will not only support much-needed transparency, but provide greater accessibility and security for investors. Having launched our own tokenization mechanism in November 2022 in partnership with Comtech Gold Bullion, backed by our internal DMCC Tradeflow platform, we’ve already tokenized 144kgs of gold for investors, while providing a value-added service that has the capacity to expand into other precious metals in the near term.”

Mark Gesterkamp, Business Development Director at Aurus Gold headquartered in UAE commented, “We applaud the step HSBC is taking by joining gold tokenization as gold has an important role in the transition to on-chain finance. It is no surprise they have done so, as it will surely open up the market through smaller traded denominations and improve liquidity and tradability.

He explained how already Aurus’ Tokenization-as-a-Service allows for any financial institution to use its technology by minting a digital representation of its bullion from gold, silver to platinum. This entails banks and family offices looking to join the digital space and finding new distribution channels.  He adds, “The decentralized nature of gold tokenization is key here, whilst being a supplying partner of the Aurus ecosystem it allows clients to benefit from trading transactions.”

UAE was one of the first countries globally to begin tokenization of gold and other precious metals. Startups from the region and globally are setting up in the country as gold-backed tokens witness a growth surpassing that of cryptocurrencies. The market cap of gold-backed tokens has exceeded $1 billion — a far cry from $100 million in 2020.

Most of the entities developing gold tokens have chosen the UAE because of its positive crypto stance, its regulations, its gold hub, and the region’s affinity to Shariah compliant commodities. With this new announcement by HSBC, the UAE is poised to become a more formidable hub for tokenization of precious metals.

Qatar Financial Centre and Blockchain company Settlemint, to tokenize private shares and equity

Qatar Financial Centre and Blockchain company Settlemint, to tokenize private shares and equity

In a recent LinkedIn post, Henk Jan Hoogendoorn, Chief Financial Sector Officer at Qatar Financial Centre Authority (QFCA) announced the commencement of next steps with Blockchain solutions provider Settlemint to tokenize private shares and equity for companies.

As noted in the post, “ Next steps on tokenization of private shares / Private Equity discussed with our digital asset lab partner SettleMint both for Qatar Financial Centre (QFC) Authority and any  investment manager that would that would like to tokenize or fractionalize investments.”

Matthew Van Niekerk, Co-founder, SettleMint, commenting on the post stated, ” Thank you for hosting us both physically and digitally for the meeting Henk Jan Hoogendoorn! Really appreciated the opportunity to exchange views on the future of finance, financial markets infrastructure and the tokenization of private securities. Exciting times ahead for the industry!”

In April 2023, Qatar Financial Centre Authority (QFCA) signed its second Blockchain MOU with Settlemint, after signing its first with R3. The agreement with Settlemint aimed to work on Blockchain and digital asset initiatives in the financial sector. QFCA and Settlemint agreed to explore potential synergies with industry participants, including financial institutions, fintech firms, and corporate organizations, to accelerate the adoption of blockchain and digital asset business models and solutions.

This announcement also comes immediately after the Qatar Financial Centre launched its digital assets Lab under the name Qatar Innovation dome. The event which was held on Sunday 29th of October 2023 included various keynotes, that explained how the digital assets lab will develop tokenization platforms and ecosystems for everything that has value whether tangible assets or intangible assets including real estate assets, securities, Sukuk, bonds and others in the future utilizing DLT ( distributed ledger technologies), blockchain, and smart contracts.

Yousuf Mohamed Al-Jaida Board Member and Chief Executive Officer of Qatar Financial Centre in his speech announced that one of the first use cases to be explored within the digital assets lab will be tokenized carbon assets. He goes on to state, “Secondly will be tokenizing private company shares to facilitate trading and management of these shares, as well as transforming Sukuk bonds into digital assets in addition to tokenized real estate to facilitate the buying and selling of real estate assets.”