- IOTA is promoting TWIN to improve trade finance through digital records and faster cross-border data verification.
- The project is already linked to pilots in Kenya and Rwanda.
Blockchain projects are increasingly moving beyond speculation and into real-world infrastructure. One example is IOTA, which is pushing deeper into global trade finance through its TWIN initiative.
During the World Crypto Forum in South Korea, IOTA co-founder Dominik Schiener highlighted how TWIN is designed to modernize trade systems by improving how trade data is shared, verified, and financed across borders. The initiative focuses on digital records, faster document verification, and better coordination among financial institutions, businesses, and governments.
TWIN Aims to Simplify Trade Finance
Trade finance relies heavily on documentation that must be verified by multiple parties, including lenders, exporters, importers, and customs agencies. This process often causes delays and inefficiencies.
TWIN aims to address these issues by introducing a system where trade records are exchanged digitally and verified instantly. By using blockchain infrastructure, the platform allows trade documents to be securely shared and validated across networks.
The result is faster document handling, improved traceability of goods, and smoother coordination across supply chains. By reducing verification delays, businesses could gain faster access to financing tied to their trade activities.
Tokenized Assets Could Unlock New Financing Opportunities
Another key feature of TWIN is the use of tokenized trade assets. In markets where borrowing costs remain high, businesses often struggle to secure affordable financing.
In Rwanda, the initiative is exploring the use of tokenized warehouse receipts and ownership records tied to physical goods. These digital records can serve as verifiable collateral, allowing businesses to obtain financing based on documented inventory.
This system may also open the door to stablecoin-based liquidity, where verified trade assets can support funding more efficiently than traditional paper-based systems.
East Africa Plays a Key Role in IOTA’s Trade Strategy
IOTA has already been working on trade-related infrastructure in East Africa. In Kenya, the foundation supported an initiative that connected 34 government systems to improve trade data verification.
This effort is part of a broader plan to improve communication between public institutions and private sector participants involved in cross-border trade. By linking systems and digitizing records, TWIN aims to accelerate the flow of trade information throughout the supply chain.
The project is supported by a large consortium that includes TradeMark Africa, the World Economic Forum, the Tony Blair Institute for Global Change, the Institute of Export and International Trade, and the Global Alliance for Trade Facilitation.
Together, these organizations aim to integrate digital trade infrastructure into existing global trade systems rather than building entirely separate frameworks.
Expanding Beyond Trade Into Sustainability and Product Tracking
IOTA has also been expanding its ecosystem beyond trade finance. In February, the project launched a sustainability transparency page detailing its network energy consumption and emissions data.
The page reports annual electricity use of 387,377.16 kWh and CO₂ emissions of 100,404.12 kg based on CCRI data.
Meanwhile, Orobo recently deployed its Digital Product Passport system on IOTA Rebased. This system provides products with a unified and traceable digital record to help companies meet upcoming European Union compliance requirements across sectors, including electronics, batteries, construction, and food.
At the time of reporting, IOTA was trading near $0.07, with daily trading volume around $10–12 million and a market cap close to $300 million.
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