IOST Token Surges 12% Amid $21M Raise to Accelerate RWA Growth

IOST, a multi-chain ecosystem for real-world asset infrastructure, saw its token price surge 12% after announcing a $21 million raise from top crypto venture capital firms. The investment will accelerate growth of its Real-World Assets (RWA) infrastructure. IOST aims to bridge traditional finance and decentralized finance for global adoption.

IOST, a multi-chain ecosystem dedicated to real-world asset (RWA) infrastructure, has secured a significant $21 million investment in a strategic funding round led by DWF Labs, Presto, and Rollman Management Group. The capital infusion will be directed towards bolstering and scaling IOST's core infrastructure for tokenizing real-world assets in fully regulated markets [1].

The funding will initially focus on Japan, where IOST already holds official government approval, with plans to expand into the broader Asia-Pacific region, Europe, the Middle East, and North America. The modular blockchain IOST aims to accelerate the adoption of regulated decentralized finance (DeFi) ecosystems and deploy scalable, secure blockchain solutions with a strong emphasis on interoperability, compliance, and robust security measures [1].

This investment is a strategic move to position IOST as a key player in the convergence of traditional finance and blockchain technology. Asset tokenization has gained traction in the financial sector, offering improved liquidity and reduced investment barriers for traditional assets such as real estate, bonds, and equities. The IOST ecosystem features a high-performance layer 1 architecture, EVM-compatible subnets, and a permissionless deployment model designed to facilitate the issuance of tokenized assets with comprehensive regulatory guarantees [1].

The growth of the RWA market is evident, with the total assets of the RWA tokenized market (excluding stablecoins) exceeding $50 billion by the end of 2024, an increase of nearly 67% from the beginning of the year. This growth reflects the broad interest of institutional and retail investors [2]. The security token market shows that more than 1,200 unique security tokens are traded on various platforms, covering debt, equity, real estate, and commodities. Real estate dominates the market, with issuers announcing $24 billion in tokenized projects, of which $5.4 billion is already live on-chain [2].

Institutional backing from major industry players such as DWF Labs, Presto, and Rollman Management Group is crucial for IOST's long-term growth. These stakeholders committed to a node allocation mechanism that supports sustainable growth, aligns incentives with the network’s core objectives, and promotes greater decentralization and active participation from validators on a truly global scale [1].

The IOST ecosystem's focus on building a network capable of supporting the growth of regulated DeFi without compromising decentralization is a key differentiator. With sights set on Europe, North America, and the Middle East, IOST strengthens its commitment to developing blockchain infrastructure designed for the long term and the seamless integration of real-world assets on a global scale [1].

References:
[1] https://crypto-economy.com/iost-secures-strategic-funding-to-push-rwa-and-defi-integration-globally/
[2] https://www.bee.com/ko/51040.html