IOTA is driving a grand vision aimed at bringing the $35 trillion global trade market into the blockchain era.
(Background: IOTA partners with Africa’s AfCFTA to launch the “ADAPT” program: reshaping cross-border trade in 55 countries with USDT and unlocking $70 billion in potential value)
(Additional context: IOTA officially launches trade finance solution Salus: unlocking a $2.5 trillion market through tokenization)

Table of Contents

• Vision: Infrastructure for the Digital Economy
• Opportunity: Conquering the $35 Trillion Trade Sector
• Proof: TWIN and Real-World Adoption
• Economic Impact: $IOTA Tokens
• Token Economics and Moats
• Technology Stack
• Conclusion: The Flywheel Effect

(This article is a sponsored content, authored and provided by IOTA. It does not represent the stance of Dongqu, nor is it investment, purchase, or sale advice. Please see the disclaimer at the end for details.)

IOTA has moved beyond the speculative phase of cryptocurrencies, focusing on onboarding real-world assets onto the blockchain through trusted, regulated, and scalable infrastructure. IOTA is not competing in saturated markets like meme coins or general DeFi, but instead is targeting the $35 trillion global trade sector, creating a unique “blue ocean” business opportunity.

IOTA’s mission is to become the single source of truth for the global economy. By vertically integrating digital identities, tokenized assets, and trade finance, IOTA is embedding its technology into the physical economy. This is not just talk; it has been concretely realized through projects like the Global Trade Information Network (TWIN) (@TWINGlobal) in Africa and the UK.

Vision: Infrastructure for the Digital Economy

Human prosperity is built on two foundational technologies: artificial intelligence (AI), which functions like the brain, and blockchain, which is the nervous system. Cloud computing digitizes data storage, AI creates ubiquitous intelligence, and blockchain provides the necessary “programmable trust” for data verification and trustless value transfer.

Although blockchain is an emerging technology, its importance and market revenue projections will rival those of cloud and AI. By 2030, global annual expenditure on blockchain networks is expected to reach $393 billion. IOTA believes this will not be a winner-takes-all market but will be dominated by specialized networks leading specific economic sectors. IOTA aims to be the leading network in international trade and logistics.

Opportunity: Conquering the $35 Trillion Trade Sector

Global trade accounts for one-third of global GDP but still relies heavily on outdated paper processes, with shocking inefficiencies:

• Cumbersome Paperwork: Up to 4 billion trade documents circulate daily, involving up to 30 units per trade and approximately 240 copies of documents.
• High Costs: Administrative costs for cross-border trade can account for up to 20%.
• Fraud and Losses: Annual losses from document forgery amount to $2-5 billion for banks and traders.
• Financing Gap: There is a $2.5 trillion annual funding shortfall in trade finance, preventing many companies from accessing necessary capital.

Since the 2017 enactment of the Model Law on Electronic Transferable Records (MLETR), which grants legal validity to electronic documents, market adoption has been slow due to the lack of neutral infrastructure. Governments and companies are reluctant to join private blockchains dominated by competitors (such as IBM and Maersk’s failed TradeLens platform). Instead, they need a neutral, non-profit, open-source underlying architecture. This is where IOTA’s product-market fit lies.

Proof: TWIN and Real-World Adoption

IOTA is not just planning for the future; it is taking immediate action through the Global Trade Information Network (TWIN).

Practical Achievements

TWIN is a system built on the IOTA mainnet, capable of digitizing millions of documents and ensuring the secure flow of physical goods.

In Kenya, TWIN has been integrated into the national trade system, initially piloting with flower exports, with plans to expand to all product categories by 2026. In the UK, the Cabinet Office is testing TWIN to streamline freight processes between the UK and Europe, with thousands of shipments tracked on the IOTA chain. Since 2024, TWIN has been fully integrated with the IOTA mainnet, officially recording cross-border trade transactions on a public ledger.

Another key milestone is the “Africa Digital Near-Use and Public Trade Infrastructure” (ADAPT) project. Led by IOTA in partnership with AfCFTA, the World Economic Forum, and the Tony Blair Institute for Global Change, the goal is to connect 1.5 billion people by 2035, significantly reducing customs clearance times and lowering cross-border payment costs. By 2030, TWIN is expected to be adopted by over 30 countries, creating a substantial network effect.

Economic Impact: $IOTA Tokens

IOTA’s tokenomics are directly linked to actual usage, employing a deflationary and utility-based economic model to create intrinsic value for $IOTA tokens. Each shipment on the chain generates dozens of transactions; digitizing just 1% of global trade documents annually could bring hundreds of millions of transactions to the mainnet.

As trade data is recorded on-chain, asset tokenization becomes the next step, including commodities, key minerals, and trade receivables—markets totaling tens of trillions of dollars. Through tokenization, these assets can be integrated into on-chain financial applications, providing new liquidity sources to fill the trade finance gap.

Over the past year, the IOTA ecosystem has launched multiple real-world applications, including tokenization of key minerals, digital identities for physical goods, and EU-compliant digital product passports. These include tokenizing real-world assets (RWA) such as commodities, key minerals, trade receivables, and warehouse receipts, integrating them into IOTA-specific DeFi applications and stablecoins like **Salus,****ObjectID,**Orobo.

Token Economics and Moats

Token economics are designed for scarcity, ensuring network neutrality and security. The model employs a “deflationary design,” meaning: higher usage makes tokens scarcer and potentially more valuable. $IOTA adopts a deflationary approach, with all on-chain activity fees used to burn tokens, and digital assets requiring locked tokens as collateral. Additionally, staking mechanisms and corporate reserves further enhance token utility.

Building on this, IOTA collaborates with organizations like the World Economic Forum, the Tony Blair Institute, and TradeMark Africa, establishing high-level government dialogue channels and market credibility, creating a moat that covers policy engagement, technological deployment, and market trust. Its tech stack is also tailored for enterprise trade applications, including identity verification, notarization, organizational authorization, and fee escrow functions.

Technology Stack

IOTA’s technology stack is specifically designed for enterprise trade applications:

• **IOTA Identity (IOTA Identity): ** Enables KYC/KYB compliance and provides verifiable credentials for trusted trade participants.
• IOTA Hierarchies: Simulates real-world corporate organizational structures and delegation on-chain.
• IOTA Notarization: Anchors cryptographic proofs for invoices, certificates, and other documents, creating tamper-proof audit trails.
• IOTA Gas Station: Offers fee escrow functions, allowing logistics providers and other non-native crypto users to access the network without holding tokens.

Conclusion: The Flywheel Effect

IOTA is at a critical inflection point. While the market is still chasing hype and speculation, IOTA is building the foundational “trust layer” for the global economy. Its growth flywheel has already started: each new country adopting TWIN enhances its trade partner network value; each tokenized shipment provides high-quality collateral for innovative financial products.

By solving real-world problems for governments and enterprises, IOTA is gradually becoming an indispensable infrastructure for global trade, akin to containers or the internet. Partnerships are established, technical deployments are in place, and the on-chain transformation of the global economy is underway.

Read the full IOTA declaration.

Sponsored disclaimer: This article is a promotional piece provided by the contributor. The contributor has no relationship with Dongqu, and this does not represent Dongqu’s position. This is not investment, asset, or legal advice, nor an offer to buy, sell, or hold assets. Any services, solutions, or tools mentioned are for reference only; final content or rules are subject to the contributor’s announcements or explanations. Dongqu is not responsible for any risks or losses that may occur. Readers should conduct their own due diligence before making any decisions or actions.