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China Names IOTA in 2025 Policy Paper on Digital Identity

Olivia Stephanie by Olivia Stephanie
August 29, 2025
Marcel Knobloch

Edited by Marcel Knobloch on August 29, 2025

IOTA Rebased Gets Real Use as Siemens Renews Interest
shield icon High-quality editorial standards, reviewed by trusted editors and knowledgeable industry experts.
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  • China’s 2025 policy report names IOTA as the only crypto project recognized in digital identity frameworks.
  • IOTA’s TVL reaches $18 million, boosted by Rebased upgrade, staking rewards, and rising DeFi activity.

In 2025, the China Ministry of Commerce issued a national policy report on Digital Product Passports (DPP), which was developed by the China Academy of Information and Communications Technology (CAICT) and the China National Institute of Standardization (CNIS). The report highlights decentralized identity frameworks and is the only document that mentions IOTA in the context of crypto projects.

The report outlines the importance of self-sovereign identity (SSI) using decentralized identifiers (DIDs). It presents IOTA as a working example of how these tools can give individuals full control over their digital identity and data. According to the report,

“China doesn’t want to simply ‘plug into’ the European system—it aims for a model of mutual recognition.”

IOTA is referenced in this context as a potential solution that fits within a shared global framework without requiring central oversight.

Meanwhile, the report also mentions attempts to align the European Blockchain Services Infrastructure (EBSI) with the Xinghuo Blockchain Infrastructure Facility of China. Cooperation without controlling is the center of the report, with IOTA marked as a solution to help with that methodology.

New Partnerships and Community Engagement

Imperial College London is the most recent academic partner to join IOTA’s institutional network. The partnership will focus on case studies for the circular economy, as well as research in sustainability, digital identity, and supply chain transparency.

In addition, the IOTA Foundation will host a community call today at 13:00 UTC. These calls are used to update the community on development progress, upcoming releases, and network activity. Token holders and developers are expected to follow the session closely.

Rebased Upgrade Expands Capabilities

The upgrade that was released earlier this year has led to several changes across the IOTA ecosystem. In the process, it added more validators, which has positively contributed to decentralization, and opened staking, whose yield is currently at 13% per year.

The upgrade also introduced MoveVM smart contracts. This is beneficial for developers, as it enables launching dApps in finance, gaming, and supply chain services. Development activity and usage of the platform have been steadily growing since the launch.

According to data from DeFiLlama, total value locked (TVL) on IOTA continues to increase. In mid-July, this metric advanced from nearly zero to over $12 million on the platform. Since then, TVL has surged to $18 million, setting a new record.

IOTA TVL
Source: DeFiLlama

The TVL has increased by around 4% in the last 24 hours, suggesting persistent interest in IOTA’s staking and smart contract capabilities. In the last 24 hours, the IOTA token depreciated slightly, trading at $0.197 with a 0.53% drop, but it is up 2.31% over the last week.

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shield icon BTC Daily is committed to providing readers with factual, unbiased, and well-researched content. Our editorial team follows strict sourcing practices and every piece is carefully reviewed by industry experts and senior editors to maintain the highest standards of quality and integrity.
Olivia Stephanie

Olivia Stephanie

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Olivia Stephanie is an experienced FinTech blogger with in-depth knowledge of financial markets. Her strong passion for economics and finance led her to explore emerging blockchain technology and the dynamic cryptocurrency markets in depth. She holds a Bachelor of Arts in Journalism from the University of Nairobi. Olivia works as a journalist at BTC Daily and also writes for other leading crypto platforms such as CryptoPotato and AMBCrypto.
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