With the increase of IoT devices generating large amounts of user-sensitive data, improper firmware harms users’ security and privacy. Latest home appliances are integrated with features to assure compatibility with smart home IoT. However, applying complex security mechanisms to IoT is limited by device hardware capabilities, making them vulnerable to attacks. Such attacks have recently become frequent. To address this issue, we developed a secure verification mechanism for firmware released by the device’s manufacturer. We proposed an IoT gateway for secure firmware verification and updating for smart home IoT devices utilizing the IOTA MAM (Masked Authenticated Messaging) protocol and a distributed file system with IPFS (Inter-Planetary File System) protocol. These two communication protocols ensure decentralized communication and firmware file distribution between the IoT device vendor and the IoT end device. The proposed scheme securely shares latest firmware content over IOTA and IPFS networks, performs a secure firmware update on IoT end devices and ensures authenticity and integrity of the firmware. Two types of validation methods were proposed for firmware updating and validation. We implemented the proposed scheme using three entities, Vendor, IoT gateway, and IoT end device. Our system yielded promising results in performing secure automated firmware updates on IoT end devices with very low computational power. The system’s functionality was implemented using IOTA’s MAM run on Raspberry Pi as an IoT gateway along with an ESP8266 Wi-Fi microcontroller, demonstrating the effectiveness of our approach. Our proposed methodology can be used for secure firmware distribution on home IoT applications.