Why the IOTA Foundation Is Betting Big on USDT Integration

• The $IOTA Foundation is focusing on $USDT in order to open up stable liquidity in DeFi, trade finance, and tokenized settlement on the network.
• Integration work is in progress, with audits and validation needed because $IOTA is non-EVM and Tether standards are strict.

$IOTA Foundation has clarified that its current development focus is centered on integrating Tether’s $USDT into the $IOTA ecosystem. According to statements shared by community contributors, the effort reflects the Foundation’s view that stable liquidity is required before tokenized trade, decentralized finance, and real-world asset workflows can function at scale on the network.

The current infrastructure at $IOTA already has data transfer, digital identities, and enterprise applications. There are also products like SALUS and TWIN that run on data exchange, invoicing, and decentralized identifiers. However, these elements do not have a universally accepted settlement property.

If you’re wondering where the $IOTA Foundation is putting all its effort right now, the answer is clear: $USDT. 💥

🔷 Without a functional stablecoin, the ecosystem can’t fully operate.
Today, SALUS can already push data and invoices, and TWIN can already handle data and DIDs, but…

— Salima (@Salimasbegum) February 5, 2026

Without a stablecoin used in global trade, on-chain financial activity remains limited despite technical readiness. X user Salima explained that $USDT has become the core focus for the first quarter because it addresses this gap. She explained that the decision is based on market usage rather than branding or ideology. $USDT is already used as a settlement instrument across borders, especially in emerging markets and trade finance, which aligns with $IOTA’s objective of supporting production-level tokenized commerce.

After these remarks circulated, discussion followed around why $USDT was prioritized over alternatives. Salima responded that the choice was structural. She noted that large-scale trade requires a stable asset that is already liquid and accepted across regions. According to her, onchain money must reflect what markets already use, or liquidity cannot form in practice.

$IOTA’s $USDT Integration and Broader Network Developments

The integration process itself is described as complex and resource-intensive. Salima observed that Tether needs firm audits and prolonged validation, especially when it comes to non-EVM networks like $IOTA. She explained that contracts have been signed and a payment made already, and the final procedures were on audits, validation, and implementation. These steps are termed as gradual but are needed in deployment.

Not everyone is in support. X user Microtruffle cited that several networks adopt $USDC because of the uniformity of regulations and bank acceptance, particularly in Europe. According to him, the $USDC offered by Circle is closer to MiCA frameworks than $USDT.

Some countered this by arguing that regional compliance preferences are diverse around the world, but the global economy largely depends on $USDT to settle on-chain transactions outside of small regulatory restrictions.

Others questioned the role of the MIOTA token. In response, Salima stated that $USDT is a settlement layer, whereas MIOTA is the token that powers the infrastructure behind the data, interoperability and coordination. The two are complementary and don’t overlap.

$IOTA is also pursuing market expansion as part of its 2026 strategy. Salima noted that the network has gained renewed exposure in South Korea, with activity linked to Bithumb Global and appearances at regional industry events. She also stated that a regulated U.S. exchange listing is planned for late February or early March, excluding Coinbase and Robinhood.

However, at press time, the $IOTA price was still bearish after failing to breach the resistance, trading at $0.07009, down 5.73%.

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