Global Trade Is Going Digital — Why XDC and IOTA Are Key Players in the $20 Trillion Market

• The global trade and trade finance market is in the works for a digital transformation that is valued at $20 trillion.
• Two networks, IOTA and XDC, form a perfect blueprint to securely tokenize, automate, reduce costs, and scale global trade.

For decades, international trade has been bogged down by paperwork, delays, and fraud. But now, a new wave of infrastructure is aiming to cut through the mess. As Web3 Alerts recently broke down in a detailed X post, these two blockchains, IOTA and XDC, are stepping up as the quiet powerhouses behind this evolution.

“The digitalization of global trade was never built to become a hot trend or be a sexy narrative,” the article notes. It’s not flashy. But for those deep in the trenches of global logistics and finance, the change is long overdue and impossible to ignore.

The XDC Network

The XDC Network isn’t just another blockchain; it’s built with a clear purpose: to solve real-world problems in global finance. XDC has proven itself to be purpose-built for the job, with deep integration across critical trade bodies like the ITFA, ICC, and WTO, and partnerships with government-backed agencies in Singapore, Brazil, and Zanzibar. Big banks like JP Morgan and Lloyds are also on board, using Enigio, a paperless trade solution built on XDC.

XDC is zeroing in on the $5 trillion trade finance gap, offering tools that eliminate outdated manual processes with a hybrid blockchain tailored for enterprise use. Why is the network important? With features like near-zero gas fees, EVM compatibility, support for both public and private transactions, and ISO 20022 messaging compliance, it gives institutions a path to adopt blockchain without compromising on performance or regulation.

As Web3 Alerts puts it, “The digitalization of trade & value behind it has become obvious to those said industry leaders.” Backed by partnerships with Archax, Securitize, SBI, and the Trade Finance Distribution Initiative, XDC is quietly modernizing one of the world’s most valuable industries.

IOTA: Trade Logistics

The article continues by emphasizing that “IOTA is by no means a small player in the future of digital trade either.” While XDC focuses heavily on trade finance, IOTA’s infrastructure has been chosen as the backbone for the Trade Logistics Information Pipeline (TLIP). This is a joint effort between the World Economic Forum and Trademark Africa that is built on IOTA’s feeless, tamper-proof Tangle and decentralized storage via IPFS.

CNF reported before that the purpose of TLIP is to digitize trade logistics data, enable paperless trade, and facilitate digital transactions in regions expected to manage over $32 trillion in volume. Since it was launched in 2020, TLIP has expanded into the TWIN Foundation. It now includes influential bodies like the Global Alliance for Trade Facilitation, the Institute for Global Change, and the Chartered Institute of Export & International Trade.

This coalition of organizations shows that policymakers and trade leaders are recognizing the immense value digital infrastructure brings to global commerce. As the article puts it, “It’s clear that these industry leaders and policymakers are seeing the value added in digital global trade.” IOTA’s unique architecture, a scalable Directed Acyclic Graph (DAG), makes it perfect for environments that require microtransactions, constant data flow, and machine-to-machine interactions, like the Internet of Things.

With additional tools like the TWIN platform, support for Ethereum-compatible smart contracts, and ambitions to help tokenize part of the anticipated $68 trillion asset-tokenization market, IOTA is establishing itself as an important layer for the digital trade future.