- IOTA is said to be actively working to bring critical minerals on-chain following the recent US-Japan deal.
- Already, Salus, a platform based on IOTA, finances the export of some of these minerals from Africa to the global market.
IOTA is reported to have shown a significant interest in bringing critical minerals on-chain in a bid to expand its Real World Assets (RWA) focus.
This development was disclosed by an IOTA ambassador known on X as “MoonBaklava”. According to his earlier post, the whole idea has been to capitalize on the recent deal sealed by the US and Japan to secure the supply of critical minerals.
More About IOTA’s Plan Around the US and Japan’s Deal
The US and Japan agreed to the deal to support domestic industries. The participants would also take advantage of policy tools, including their various financial support mechanisms, critical minerals stockpiling systems, and trade measures where appropriate. Apart from this, the deal would include several interesting provisions, including fair competition, pricing, and mechanisms.
The Participants will work to secure their critical minerals and rare earths supply chains by addressing non-market policies and unfair trade practices, including by establishing high-standard marketplaces that reflect the real costs of responsible extraction, processing, and trade of critical minerals and rare earths, and pricing measures to support alternative projects and such high-standard markets, in line with their respective policy tools.
Fascinatingly, IOTA intends to make things easier by providing better tracking and digital proof of where the materials originate, according to “MoonBaklava.” Meanwhile, Singapore is said to have been the main hub for financing and shipping the minerals before they get to the US or Japan. It is also important to note that Salus Platform is based in Singapore.
For context, Salus is a digital trade finance platform for critical minerals that operates on IOTA. In a September post, Salus disclosed that it is already financing tantalum, tin, and niobium shipments directly from Africa to the global market, and it is doing this with IOTA.
Fascinatingly, the recent focus on bringing critical minerals on-chain forms part of the ultimate plan of the blockchain platform. As indicated in our previous news story, IOTA co-founder Dominik Schiener disclosed that they were actively working to build a digital world on-chain.
In a recent post, IOTA mentioned that its tokenization brings RWAs, including real estate, commodities, equities, etc, on-chain.
In another report covered by CNF, Schiener highlighted that the project has, over the years, been focusing on digitizing the backbone of the modern economy or international trade. The plan has been to create digital identities for traders and governments, and also to tokenize commodities and financial assets.
In July, it officially launched its IOTA Notarization to complement the traditional systems in solving document-related fraud faced by organizations, as noted in our news publication.
This transparency is the very point of notarization on a public distributed ledger and ensures integrity, immutability, and verifiability through high availability of certain information.
Regardless of these developments, the price of IOTA has declined across all the major trading sessions, falling by 1.15% in the last 24 hours, 0.62% in the last seven days, 13% in the last 30 days, and 22% in the last 90 days to trade at $0.14.
According to the IOTA co-founder, there could be a huge turnaround in price as the 2017 explosive run could repeat. Another analyst has also disclosed that recapturing the $0.27 to $0.28 resistance range could be crucial for its next rally, as mentioned in our previous analysis.
