Key Takeaways:
- Innovation City launched an onchain identity system on May 4 to replace static PDF business licenses.
- IOPn’s OPN chain supports 10,000+ TPS to provide the machine-readable data required for Agentic AI.
- Within 2 years, 50% of the UAE federal sectors will use these digital assets to automate government services.
A Shift From Static Paper to Living Assets
Innovation City, the United Arab Emirates (UAE)’s artificial intelligence (AI)-focused free zone, announced on May 4 the launch of a blockchain-based digital business identity system. The new system, which effectively replaces traditional paper and PDF licenses with cryptographically verifiable digital assets, is powered by the OPN chain and provides each registered company with a “living” digital identity.
Officials said the shift moves business registration away from centralized government databases toward a decentralized model that allows for instant, immutable verification of corporate credentials. According to a media statement, the rollout aligns with a recent UAE federal directive to transition 50% of government services and operations to agentic AI within two years.
By placing business identities on a blockchain, Innovation City provides the machine-readable infrastructure necessary for AI agents to process permits, compliance checks, and taxation autonomously.
“Today we don’t just register companies, we give them a soul on the blockchain,” said Paul Dawalibi, CEO of Innovation City. “For decades business identity has been trapped in paper, PDFs, and fragile databases. We are ending that era.”
Dawalibi noted that the move is intended to eliminate the “verification uncertainty” that often slows down cross-border trade and institutional interactions.
The technology behind the initiative, developed by IOPN, is an Ethereum Virtual Machine ( EVM) compatible Layer 1 blockchain. It boasts speeds of over 10,000 transactions per second with sub-second finality, according to the company.
Mojtaba Asadian, CEO of IOPN, described the OPN chain as the “sovereign infrastructure layer” for the UAE’s emerging AI economy.
“The future of enterprise is not centralized databases or fragmented systems,” Asadian said. “It is sovereign, verifiable, and alive on-chain.”
The free zone listed several immediate benefits for registered enterprises, including curbing document forgery and the formation of opaque shell companies. It also enables banks and regulators to verify a company’s standing in seconds rather than weeks. The digital identities are also designed to travel across different platforms and international borders.
Innovation City officials stated that the transition is not merely a technical upgrade but a “complete re-architecture” of corporate existence. They argued that as AI integration becomes standard across the Middle East, a blockchain-based identity will become “table stakes” for any company wishing to participate in frictionless global commerce.
Located in Ras Al Khaimah, Innovation City has positioned itself as a primary hub for emerging technologies, specifically targeting the intersection of artificial intelligence and decentralized finance.
