How IOTA Can Help Companies Meet EU Digital Product Passport Regulations

• In April, the EU Commission published a Plan under the Ecodesign Regulation, detailing the phased introduction of Digital Product Passports.
• The IOTA DLT makes product data unchangeable, protecting against fraud and supporting companies in meeting strict DPP regulations.

A Digital Product Passport (DPP) is an electronic record that captures detailed information about a product throughout its entire lifecycle. The EU introduced DPP through the Ecodesign for Sustainable Products Regulation (ESPR) in July 2024. From 2027, all textiles sold in the EU will be required to include a DPP.

In the following years, additional major industries will need to adopt DPPs as well, which means UK businesses trading with the EU will require systems to track, manage, and share product information seamlessly across borders.

The IOTA team explained in an X post that,

Each Digital Product Passport serves as a digital identity for a product, detailing its raw materials, manufacturing methods, environmental footprint, care guidelines, and end-of-life options like repair or recycling.

The aim is to make supply chains more transparent, help consumers make informed decisions, and advance the EU’s shift toward a circular economy.

What IOTA Brings to the Table

The IOTA team highlighted several reasons why IOTA is well-suited for this challenge. IOTA delivers enterprise-ready performance with impressive speed, supporting up to 50,000 transactions per second and achieving sub-second finality. One key factor is their recently launched free and open-source Trust Framework.

As previously reported by Crypto News Flash, the Trust Framework is built around five key tools: IOTA Identity, Notarization, Hierarchies, Tokenization, and the IOTA Gas Station. IOTA Identity works closely with Notarization, which secures critical data by creating tamper-proof records.

Notarization allows information to be anchored transparently, verifiable by anyone, and unchangeable by anyone else, while integrating seamlessly through Move smart contracts. On the other hand, IOTA Identity provides privacy, trust, and reliable data availability, allowing people, organizations, and devices to interact securely without needing intermediaries.

Tokenization is the process of turning a real-world object into a unique, digital, and anonymous representation. What makes IOTA’s tokenization special is that it leverages the network’s scalable and energy-efficient distributed ledger, offering capabilities that traditional blockchain tokenization can’t match.

And when it comes to transactions, the IOTA Gas Station enables gas-free operations and supports easy sponsorship, access control, and deployment, while seamlessly integrating with the MoveVM-based IOTA Network, ensuring fast, secure, and fully compatible execution across the network.

Take, for instance, a steel manufacturer that produces steel beams for construction. Using IOTA Identity, they register themselves and their production facility on the ledger, ensuring that all data they submit can be verified and authenticated.

IOTA Notarization records details about raw materials like iron ore source, carbon footprint, alloy composition, immutably, creating a tamper-proof record of the product’s origin.

Then, the steel beams are shipped to construction companies overseas. IOTA Hierarchies allows the manufacturer to delegate trust to logistics providers and auditors. After years of use, the steel beams are decommissioned.

The recycler scans the beams, and using IOTA Tokenization, each product or batch of steel is represented as a digital token carrying its full history, from production to installation.

All these updates and token transfers occur via the IOTA Gas Station, which enables transactions on the IOTA ledger to take place feelessly.