IOTA

IOTA was founded in 2015 by David Sonstebo, Sergey Ivancheglo, Dominik Schiener, and Serguei Popov. The IOTA Foundation, a German nonprofit based in Berlin, manages the protocol. IOTA was built for the Internet of Things: the idea that billions of devices need to transact tiny amounts of value and data with each other without paying fees that exceed the transaction value. In 2025, the project turned 10 years old and shipped its most significant upgrade yet.

IOTA originally ran on the Tangle, a directed acyclic graph where each new transaction validates two previous ones, eliminating the need for miners or validators and enabling zero-fee transactions. That architecture was novel but came with trade-offs, particularly the reliance on a centralized "Coordinator" node for security. In May 2025, IOTA launched the Rebased upgrade, which fundamentally changed the architecture. IOTA Rebased replaced the Tangle with a Move-based object ledger using delegated proof-of-stake consensus. Thirteen Genesis Validators coordinated the migration. The upgraded network targets 50,000 TPS, introduces staking rewards (10-15% APY), and supports MoveVM-based smart contracts. The Move programming language (originally developed for Meta's Diem project) enables DeFi, asset tokenization, and digital identity applications directly on Layer 1.

IOTA's ISO 20022 connection is the weakest of the top-tier names on this list after Cardano. IOTA is not an RMG member. The original Tangle could embed structured data in transactions, and the IOTA Foundation has positioned the protocol as compatible with ISO 20022 messaging for machine-to-machine payments. But there is no formal governance role and no published integration with major ISO 20022 payment flows. The connection is aspirational more than operational.

Partnership history includes Dell Technologies (Project Alvarium, a data confidence fabric with the Linux Foundation), Zebra Technologies (a decentralized identity SDK for edge devices and supply chain), and Jaguar Land Rover (testing IOTA for smart wallet integration). The IOTA Foundation has worked with the European Commission on digital identity frameworks. More recently, the TWIN, ADAPT, and Salus programs expanded trade adoption in 2025, with three countries confirmed to deploy on IOTA Mainnet via ADAPT and five more in pilot.

The Rebased upgrade in May 2025 was the defining moment. IOTA went from a feeless DAG protocol with a centralized coordinator to a staking-enabled, smart-contract-capable Layer 1. That is a massive pivot. Staking rewards launched for the first time. MoveVM smart contracts brought DeFi capability. The 2026 roadmap includes an Advanced Securitization Framework for tokenized real-world assets and Global Trade Infrastructure Expansion targeting the $35 trillion trade market.

Watch whether the Rebased architecture attracts developers. IOTA has pivoted so significantly that it is essentially a new project competing for the same developer talent as Sui and Aptos (both also Move-based). The ADAPT government deployments will be the clearest signal of institutional traction.