Internet of Things and Blockchain technologies have been dominating their respective research domains for some time. IoT offers automation at the finest level in different fields, while Blockchain provides secure transaction processing for asset exchanges. The capability of IoT devices to generate transactions prompts their integration with Blockchain as the next logical step. The biggest challenges in this integration are the scalability of ledger and rate of transaction execution in Blockchain. On one hand, due to their large numbers, IoT devices will generate transactions at a rate which current block chain solutions cannot handle. On the other hand, implementing Blockchain peers onto IoT devices is impossible due to resource constraints. This prohibits direct integration of both technologies in their current state. In this article, we propose a solution to address these challenges by using a local peer network to bridge the gap. It restricts the number of transactions which enters the global Blockchain by implementing a scalable local ledger, without compromising on the peer validation of transactions at local and global level. The testbed evaluations show significant reduction in the block weight and ledger size on global peers. The solution also indirectly improves the transaction processing rate of all peers due to load distribution.