The Central African Republic’s national memecoin (CAR) surged approximately 20% amid a crypto market correction that saw many altcoins retreat in value. Interestingly, the key driver of the surge is a state-led land tokenization project, which the CAR token will facilitate.
Tokenization involves converting ownership rights of real-world assets (RWAs) into digital tokens on a blockchain, enabling fractional ownership. By leveraging blockchain technology, tokenization offers benefits like increased liquidity, reduced transaction costs, and enhanced transparency.
The president, Faustin-Archange Touadéra, had announced the launch of the CAR memecoin, labeling it the “national memecoin” of the country, aimed at promoting national development. On launch day, the token experienced a rapid decline due to allegations of deepfake videos related to the announcement and the suspension of its official social media accounts.
Central African Republic Plans to Tokenize Land
The President released a presidential decree stating that beginning June 2025, over 1,700 hectares of land located near Bossongo village would be tokenized and sold via the Solana blockchain using CAR tokens.
The government claims that allowing the tokenization of land concessions will introduce greater transparency and accessibility to sectors plagued by opacity, such as the mining sector. The decree cites the country’s existing mining code and laws related to resource tokenization. It hints that these concessions may be for activities such as gold or diamond mining.
Recall that President Touadéra described CAR as an “experiment designed to unite people, support national development, and put the Central African Republic on the world stage in a unique way.” Hence, he believes the initiative will drive direct foreign investment into the country’s industries while fostering innovation in fintech and blockchain.
However, it’s noteworthy that while the C.A.R. government has consistently promoted the token as a tool for financial inclusion, 80% of its adult citizens are unbanked.
Tokenization on the Rise
As blockchain technology grows, several firms are getting interested in tokenization. Recently, investment firm VanEck, in partnership with Securitize, launched the VanEck Treasury Fund (VBILL). The fund provides investors with on-chain access to U.S. Treasury-backed assets, offering real-time settlement and 24/7 liquidity.
Tether recently launched its tokenized product (XAUT) in Thailand. The token represents ownership of physical gold, as each XAUT corresponds to one troy ounce of gold stored in Swiss vaults.
Additionally, Coinbase launched Project Diamond to advance the tokenization of real-world assets by enabling institutions to create, manage, and trade financial instruments directly on-chain. It partnered with Chainlink to use its Cross-Chain Interoperability Protocol (CCIP) for seamless connectivity across blockchains and traditional systems.
