Taran Dhillon, head of digital assets at Kula – a decentralized impact investment firm that transforms overlooked real-world assets (RWAs) such as mines and logistics operations into tokenized, community-governed projects – said onchain verification and local governance are critical to drawing institutional capital toward regenerative investments in emerging markets.
Speaking to Sandmark at Consensus Miami, Dhillon pointed to Kula's limestone mining project in Zambia, developed in partnership with Bekazulu Mining, as a proof of concept. The initiative incorporated community input into governance, leading to a new water well, equal pay for men and women at the site – rare among Zambian mines, he said – and other local priorities.
"The reason for that is because the local community weren't dragged in on the decision-making about how to define impact on the area," Dhillon said. "It makes no sense to sit here in Miami and try to understand what that impact looks like over in Zambia, and people who are actually there, whose lives are being affected by these decisions, should be put in the simulation process."
Community governance builds trust
Dhillon stressed that including local stakeholders in decision-making processes addresses scepticism toward external investors in emerging markets. Kula deploys the blockchain to enable transparent, real-time tracking of governance votes and impact metrics, such as carbon savings from a recent investment in Kenyan ride-hailing.
The firm announced a $5mn strategic investment into a Vodafone-style boda-boda (motorcycle taxi) platform in Kenya. Dhillon said the project, which forms a notable part of the local economy, boosts driver disposable income by about $1,000 per year.
Family offices show the strongest institutional demand for such tokenized impact assets, according to Dhillon. Next-generation family offices in particular seek measurable social outcomes alongside returns.
"Family offices want to make an impact." Dhillon said. "You can provide a means of notability and verifiability, be it in local communities, in hospitals, road infrastructure. If you can do that in a way in which the people trust this process, they don't have to trust me, but you can verify it yourself as an impact investor."
Approximately $25bn in tokenized RWAs exist today, mostly in traditional instruments such as ETFs, debt and credit, per market data. Non-bankable assets require stronger legal wrappers for broader uptake, Dhillon said.
Regulation key to scaling adoption
Kula employs a "Web 2.5 hybrid" model that tokenizes legal documents and governance structures around physical assets. This approach offers institutions clearer ownership rights than fully decentralized alternatives.
"Regulation is absolutely vital because for institutional capital to come in and move at the pace at which they want to, regulations are the only barrier," Dhillon said.
He voiced optimism that the Digital Asset Market Clarity Act (CLARITY Act) would provide needed regulatory certainty if enacted. Such clarity could accelerate tokenization of African RWAs by improving investor confidence and capital flows into verifiable impact projects.
The industry continues to mature, with terminology shifting from "crypto" to "digital assets" and more professionals attending events in formal attire. Impact investing is converging with tokenization to move beyond periodic ESG reports toward real-time, onchain verification.
"If I say to you that we can issue water in Zambia, you should be able to actually verify that yourself and not just take my word for it, and in real time."
Communities in Kula's projects vote on practical proposals, such as solar-powered charging stations or micro-pension schemes. This stakeholder alignment creates shared value across diverse assets, from mining to logistics and real estate.
