In 6 ce, Judas of Galilee was opposed to Roman taxes, so he and Zadok the priest assembled a militant force of theocratic nationalists called the Zealots. These Zealots spearheaded a number of attacks against Roman forces and tax collectors, earning the contempt of Caesar. The name Judas Iscariot is a reference to the ‘Sicarii’, the assassin squad that violently enforced Zealot rulings.
Judas Iscariot is then representative of all Jews in general and the rebellious ones in particular. They were the ones who betrayed Rome and Caesar: Judas simply represents them in his act of betrayal. The presence of Judas in this story is to show how the fabric of Empire changes over time, and that another people is chosen to take the place of the Judeans to become part of the larger Empire.
For the past two millennia, Judas Iscariot has been the vile caricature of Judaism used whenever anyone wanted to make a point against the Jewish people. There can be no doubt that vilification of the Judeans was a significant intent of the Gospels.