Innovation City, a Ras Al Khaimah-based free zone focused on artificial intelligence and Web3, has launched what it claims is the first blockchain-based digital business identity system.
According to a Monday release shared with Cointelegraph, every company registered in Innovation City receives a sovereign, cryptographically verifiable identity issued on OPN Chain, the public blockchain infrastructure developed by United Arab Emirates-based IOPn.
The release said this turns the business license from a static PDF or database entry into a dynamic onchain asset designed to reduce reliance on centralized intermediaries and cut verification uncertainty.
The move reflects a broader push in the UAE to replace traditional business registries with blockchain-based identity systems and agentic, self-executing AI, which proponents say could streamline verification and enable more seamless digital operations. By embedding onchain identity directly into company registration, Innovation City is testing a model that goes beyond most existing digital ID frameworks, but its impact will depend on whether external institutions adopt it.
How the business identity system will actually look
Jimi Ibrahim, co-founder and chief operating officer of IOPn, told Cointelegraph that at launch, the onchain identity framework is intended to extend across Innovation City’s existing client base of over 1,000 companies, with immediate live utility within the free zone’s own digital ecosystem.
He said the core value is not simply issuing a digital certificate, but giving each company a cryptographically verifiable business identity to use for access and verification across Innovation City touchpoints, such as the business center and selected ecosystem services, expanding to partners, like technology, marketing and legal providers, over time.
Ibrahim described OPN Chain as a public network where validator participation is open to institutions, infrastructure partners and governance-approved node operators. He said the network uses a hybrid data model that keeps core transaction data and proofs onchain while handling sensitive or large datasets offchain.
He argued this setup differs from existing digital identity or verifiable credential schemes, such as Estonia’s e-residency program, because the onchain identity is established as the native business registration primitive for all companies in the free zone, rather than as an optional overlay on top of a conventional registry.
However, he did not name specific banks, regulators or exchanges that currently accept or verify these onchain identities, leaving questions about external integrations, dispute resolution, and how quickly credentials can be corrected or revoked once third parties are involved.
AI security and geopolitical risks
Recent exploits in which AI agents were socially engineered into authorizing crypto transfers from wallets they controlled have highlighted how autonomous systems can be manipulated, raising questions about the resilience of AI-driven workflows like these.
Ibrahim said that every agentic workflow built on these identities will require “human-in-the-loop authorization for consequential actions,” and that the agent layer is designed with adversarial scenarios as “a first principle, not an afterthought.”
The launch also comes against the backdrop of regional conflict and fresh attacks involving the UAE on Monday. Recent eToro data cited by Cointelegraph found that UAE investors have been adding to positions in AI infrastructure, software and crypto-linked assets during the conflict rather than cutting exposure, despite the heightened volatility. An April 13 Deutsche Bank report said that the conflict is more likely to sharpen demand for AI rather than derail it.
Why is the Gulf so well-suited for AI? Source: Deutsche Bank
Ibrahim called the UAE one of the most “institutionally stable jurisdictions” and said that OPN Chain’s distributed validator network means no single regional event creates a failure point for the identity infrastructure these companies rely on.
Market Moves: Why is Ethereum Foundation selling? BTC futures warning signs