The Good Tech Companies - Why COTI Joined Saudi Arabia’s $140B Tech Bet on AI, Blockchain, and Real-World Assets

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Why Kodi Joins Saudi Arabia's $140 Billion Tech Bet on AI, Blockchain, and Real-World Assets, by Ashan Pandey. Hashtag How COTI's Role in Saudi Arabia's AI and Blockchain Center Could Shape the Future of Web 3 and Real-World Assets Why is a blockchain protocol from Israel becoming a key player in Saudi Arabia's ambitious AI and blockchain plans? The announcement of Kodi as a founding member of the newly formed Saudi Arabia AI and Blockchain Center, SAIBC, raises questions about the intersection of blockchain, geopolitics, and next-generation infrastructure. It also offers a window into the kingdom's strategy to lead AI and blockchain adoption across the Middle East and Africa.

Starting point is 00:00:47 SA AIBC, launched at the Real World Asset, RWA, summit in Dubai, is positioned as a multi-stakeholder collaboration between public sector leaders, investment firms, and Web3 companies. COTI's involvement suggests a targeted shift toward institutionalizing blockchain infrastructure in regions historically underserved by such technologies. What is the Saudi Arabia AI and Blockchain Center? The Saudi Arabia AI and Blockchain Center, or SAAIBC, was officially introduced during the RWA Summit Roundtable at the Burj Al Arab. The event, which coincided with TOKEN 2049, featured participation from

Starting point is 00:01:27 40 leaders across governments, royalty, and investment funds. The goal of the center is to accelerate the adoption of artificial intelligence and blockchain technologies in MENA and Africa. Participating countries included the United Arab Emirates, Saudi Arabia, Nigeria, Sierra Leone, Kazakhstan, France, and the United Kingdom. The initiative complements Saudi Arabia's Vision 2030, a strategic framework aimed at reducing the Kingdom's reliance on oil and diversifying its economy. The scale of the initiative is significant. Vision 2030 includes a $40 billion AI fund managed by the Public Investment Fund and

Starting point is 00:02:03 a broader $100 billion strategy called Project Transcendence. These programs focus on investing in data centers, AI startups, and public-private partnerships to accelerate the country's digital infrastructure. This means that Saudi Arabia is not only investing in future technologies but is creating frameworks where blockchain and AI adoption are integrated into national policy and investment strategy. Why is COTI's involvement important? COTI, a blockchain protocol originally built to address scalability and privacy, is now positioning itself at the heart of real-world blockchain deployment. Its inclusion in SAAIBC reflects

Starting point is 00:02:41 a broader recognition of its privacy-preserving technology, which is increasingly relevant to governments and financial institutions exploring digital assets. The biggest challenge for institutional adoption of public blockchain's IS privacy. Public ledgers can expose transactional data, a limitation for regulated financial services. COTI's Layer 1 protocol is designed to maintain auditability while protecting user confidentiality. This is particularly useful in the tokenization of real-world assets or RWAs such as land registries, government bonds and commodities. Shahaf Bar Geffen, CEO of Kodi, described the moment as a strategic

Starting point is 00:03:21 inflection point. This is a rare opportunity to shape blockchain policy and infrastructure at an early stage throughout the Africa and MENA region," he said during the roundtable. Greater than, by bringing together infrastructure providers, including COTI, with greater than investors, government officials, and businesses, we will be able to trial greater than meaningful projects with input from all relevant stakeholders, giving the greater than greatest possible chance of success. What are real-world assets and why do they matter? Real-world assets refer to tangible or off-chain assets that can be brought onto the blockchain

Starting point is 00:03:55 through a process called tokenization. Examples include real estate, bonds, oil reserves, carbon credits, and even artworks. Tokenizing such assets allows them to be traded digitally, in smaller units, with enhanced liquidity and transparency. For example, if a government wants to tokenize infrastructure bonds, it could create digital representations of those bonds on a blockchain, allowing smaller investors to participate in public financing. Similarly, land registries or agricultural commodities could be digitally represented and traded globally. The potential market for RWAs is

Starting point is 00:04:30 estimated in the trillions of dollars. In a region like MENA, where capital markets are still developing and investment infrastructure is uneven, blockchain-based RWA platforms could unlock capital and build investor trust. What happened at the RWA summit in Dubai? The RWA summit served as the launchpad for SAAIBC and focused on challenges around asset tokenization. Conversations at the event included issues such as regulatory clarity, building trust between traditional finance, TRAD-FI, and decentralized finance, DE DeFi, and how to operationalize tokenization at scale.

Starting point is 00:05:07 Attendees represented around $500 billion in assets under management. While much of the event was held under Chatham House rule, the formation of SAAIBC was one of the few formal announcements. It marked a clear step toward institutional blockchain adoption in regions that are often excluded from early-stage technology trials. This summit also demonstrated that governments in MENA and Africa are no longer on the sidelines of blockchain development. They are actively shaping the next phase of blockchain infrastructure, not just as users but as policy architects. My opinion and final thoughts. This development signals a shift in how blockchain and AI will be institutionalized over the

Starting point is 00:05:46 next decade. What stands out is the pragmatic approach being taken. Saudi Arabia is not just investing in shiny tech. It is building frameworks where technology aligns with national goals and regional needs. COTI's entry into this ecosystem is not just symbolic. It shows that privacy-preserving infrastructure is becoming a strategic asset. For the Web3 industry, this is a reminder that the next big wave of adoption may not come from Silicon Valley but from public-private partnerships

Starting point is 00:06:14 in emerging markets. It also raises questions for policymakers and builders. How can infrastructure be designed to accommodate both compliance and decentralization? How do we ensure these collaborations are inclusive and not extractive? While only time will answer these questions, one thing is clear. The foundation is being laid, and the players are being chosen. Those who participate now may have the greatest impact on how this future unfolds. Don't forget to like and share the story. Tip Vested Interest Disclosure This author is an independent contributor publishing via our business blogging program.

Starting point is 00:06:49 Hacker Noon has reviewed the report for quality, but the claims herein belong to the author. Hashtag dyo. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit hackernoon.com to read, write, learn and publish.

The Good Tech Companies - Why COTI Joined Saudi Arabia’s $140B Tech Bet on AI, Blockchain, and Real-World Assets

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