diff --git a/modules/sdk-coin-iota/src/iota.ts b/modules/sdk-coin-iota/src/iota.ts
index a0d417e332..d1fdd43c4b 100644
--- a/modules/sdk-coin-iota/src/iota.ts
+++ b/modules/sdk-coin-iota/src/iota.ts
@@ -237,6 +237,13 @@ export class Iota extends BaseCoin {
     return rebuiltTransaction.signablePayload;
   }
 
+  /**
+   * @inheritDoc
+   */
+  allowsAccountConsolidations(): boolean {
+    return true;
+  }
+
   /**
    * Sets coin-specific fields in the transaction intent.
    * @param intent - The populated intent object to modify
diff --git a/modules/sdk-coin-iota/test/unit/iota.ts b/modules/sdk-coin-iota/test/unit/iota.ts
index f9be78107c..6961f815d2 100644
--- a/modules/sdk-coin-iota/test/unit/iota.ts
+++ b/modules/sdk-coin-iota/test/unit/iota.ts
@@ -42,6 +42,10 @@ describe('IOTA:', function () {
     tiotaStatics.gasTankMinBalanceRecommendationFactor.should.equal(200);
   });
 
+  it('should support account consolidations', function () {
+    basecoin.allowsAccountConsolidations().should.equal(true);
+  });
+
   it('is valid pub', function () {
     // with 0x prefix
     basecoin.isValidPub('0x9b4e96086d111500259f9b38680b0509a405c1904da18976455a20c691d3bb07').should.equal(false);