IOTA’s Strategic Move Toward Coinbase’s Rosetta
IOTA has long been considered one of the most innovative blockchain alternatives, built not on traditional chains but on a directed acyclic graph (DAG) designed for scalability, efficiency, and fee-less transactions. Now, the IOTA Foundation is pursuing a potentially transformative step: integration with Coinbase’s Rosetta standard.
Rosetta, launched in 2020, is an open-source toolkit that simplifies blockchain integration for exchanges and wallets. If successful, IOTA’s adoption of this standard could accelerate its listing on major platforms—potentially even Coinbase itself—and unlock broader liquidity and developer engagement.
Why Coinbase’s Rosetta Matters for IOTA
Standardized Access to Exchanges and Wallets
By implementing Rosetta, IOTA aligns itself with over 25 blockchain networks, including Bitcoin and Ethereum. This makes it easier for exchanges and wallets to read, write, and process IOTA transactions, reducing integration complexity.
Lower Barriers for Developers
Rosetta eliminates redundant coding work, enabling developers to build cross-chain applications more efficiently. For IOTA, this means faster growth in decentralized applications (dApps) and potential real-world use cases, from finance to the Internet of Things.
Potential Boost in Adoption and Liquidity
An IOTA-Rosetta integration could be the missing link between its advanced technology and mainstream accessibility. With more exchanges able to support IOTA seamlessly, adoption could increase significantly.
Technical Overview of the Integration
At its core, the integration requires IOTA to establish a Rosetta-compliant API layer. This acts as a universal connector, enabling smooth communication between IOTA and the wider blockchain ecosystem.
For users, the result is greater accessibility and reliability when trading or interacting with IOTA-based applications. For institutions, it signals that IOTA is serious about meeting the interoperability standards of global crypto markets.
IOTA’s Market Position in 2025
Despite trading at just $0.37—over 90% below its 2019 peak, IOTA remains a notable player in the blockchain industry. Recent months have seen both price volatility and increased trading volume, reflecting renewed investor interest as the Foundation strengthens partnerships and expands adoption.
Recent highlights include:
- Partnerships with Eviden and Kenyan government agencies for digital identity and trade solutions.
- Participation in the European Blockchain Pre-Commercial Procurement, showcasing its role in EU-backed innovation.
- Expansion of validator networks with infrastructure leaders such as Cosmostation, Nansen, and Ankr, enhancing scalability and security.
The IOTA Rebased Upgrade: A Protocol Revolution
One of the most important developments for IOTA is the Rebased upgrade, approved by 98% of the community. This upgrade represents a fundamental shift in how IOTA’s ledger operates.
From UTXO to Object-Based Ledger
The transition allows for greater programmability, enabling complex applications that go beyond simple token transfers.
Dual Smart Contract Support
By integrating both MoveVM and EVM (Ethereum Virtual Machine), IOTA allows developers to leverage different ecosystems, opening doors for hybrid DeFi applications.
Scalability and Security
The upgrade is expected to process 50,000+ transactions per second, positioning IOTA among the fastest distributed ledgers. Enhanced resistance to quantum computing attacks further future-proofs the network.
Government and Enterprise Integration
IOTA’s enterprise adoption efforts are accelerating. Recent initiatives include:
- Eviden Digital Passport Solution – improving trade document access and authenticity.
- Collaboration with the Kenya Revenue Authority, enhancing transparency in customs and trade processes.
- Virtual Watch Tower project with TWIN, enabling real-time access to primary data for industries.
Such moves highlight IOTA’s strategy of embedding itself into government infrastructure and enterprise workflows, differentiating it from purely retail-focused blockchains.
IOTA’s Expanding Global Strategy
The Foundation has signaled an aggressive strategy for institutional adoption. Plans include:
- Development of ETFs and custody solutions to attract institutional investors.
- A focus on South Korea, one of the fastest-growing crypto markets.
- Launch of platforms for real-world asset tokenization, from real estate to luxury goods.
If successful, these initiatives could establish IOTA as a bridge between traditional finance and decentralized networks.
IOTA and the Future of DeFi & Asset Tokenization
The IOTA Rebased upgrade positions the network as a leader in DeFi and real-world asset tokenization. By enabling programmable assets and interoperable smart contracts, IOTA could become central to tokenizing everything from supply chains to property.
Projects like Gen Sol’s digital entertainment platforms are already exploring IOTA’s infrastructure, hinting at the wider potential for adoption across industries.
Conclusion: A Critical Moment for IOTA
IOTA’s potential integration with Coinbase’s Rosetta standard marks more than just a technical milestone—it could be the inflection point where the project transitions from underrated innovation to global adoption. Combined with the ambitious Rebased upgrade, enterprise partnerships, and institutional expansion, IOTA is building the foundations for long-term relevance in blockchain and decentralized finance.
While challenges remain, the trajectory is clear: IOTA is positioning itself not just as a crypto token, but as a core infrastructure for the digital economy.
FAQ on IOTA
What is IOTA?
IOTA is a distributed ledger technology using a DAG-based architecture designed for scalable, fee-less, and energy-efficient transactions.
What is Coinbase’s Rosetta, and why is it important for IOTA?
Rosetta is an open-source API standard that simplifies blockchain integration with exchanges and wallets. For IOTA, this could lead to greater liquidity, accessibility, and adoption.
What is IOTA Rebased, and how does it impact the network?
IOTA Rebased is a protocol upgrade that introduces an object-based ledger, dual smart contract support with MoveVM and EVM, and scalability of 50,000+ TPS, making IOTA highly programmable and efficient.
How is IOTA working with governments and enterprises?
IOTA has partnered with organizations like Eviden, the EU, and Kenya’s government to provide blockchain-based trade, identity, and data solutions.
What role will IOTA play in DeFi and real-world asset tokenization?
IOTA’s upgrades enable tokenization of assets like real estate, supply chains, and digital goods, positioning it as a key player in the next wave of decentralized finance.
