IOTA collaborated with the FSRA in the UAE TradeTech sandbox and worked alongside institutions including the Kenya Revenue Authority, TradeMark Africa, TradeFlow and the Global Legal Entity Identifier Foundation (GLIEF). This diverse group of participants helped test how trusted identity and documentation could flow across borders in a real-world trading relationship. The company tested a seven-step process simulating trade between a Kenyan flower exporter and an international buyer: 1. Create digital identity credentials for all participants that could be verified independently 2. Establish digital wallets linked to these verified identities 3. Access government-validated trade documents through Kenya’s national trade platform 4. Convert commercial invoices into digital assets with clear ownership records 5. Assess financing risk based on verified trade and identity data 6. Distribute capital through programmable contracts tied to verified identities 7. Automate payment and settlement when goods reached their destinationMain findings The testing showed that IOTA’s approach could effectively connect identity verification across jurisdictions. The automated processes could reduce paperwork for exporters and accelerated access to capital. Importantly, the system could function without centralized coordination. Each participant could retain control of their own connections. However, financial institutions and regulators expressed concerns about responsibility for data accuracy, compliance with AML requirements and how automated contracts would interact with existing regulatory frameworks. These questions highlighted broader structural gaps. The regulatory assessment identified a specific challenge: the absence of a clear, nationwide framework for digital trade data or automated financial contracts tied to physical trade. Questions remain about whether digital identities and credentials from international systems would satisfy regulatory requirements for customer verification. IOTA Trade Worldwide Information Network (TWIN) BOX 6 Company background: Based in Germany, IOTA develops digital infrastructure for secure, decentralized information exchange. Its TWIN platform – a cutting-edge digital infrastructure that connects stakeholders in the trade system throughout global supply chains – enables trade participants to establish trusted digital relationships across borders without relying on intermediaries or centralized verification systems. Main technology features: –Self-sovereign digital identity with integration to government verification systems –Digital documentation that maintains connections to official sources –Programmable financial agreements linked to verified trade events –Digital payment infrastructure for cross-border settlement Testing participants: IOTA collaborated with the FSRA, the Kenya Revenue Authority, TradeMark Africa, the GLIEF TradeFlow and trade finance providers to simulate how digital identity and verified trade data could support financing between a Kenyan flower exporter and an international buyer. Advancing Digital Trade: Insights from the UAE TradeTech Regulatory Sandbox 15

Advancing Digital Trade 2025