GLEIF explores road to standard for blockchain-based digital identity

The Global Legal Entity Identifier Foundation (GLEIF) has produced a new blockchain identity report that looks at the future of digital identity and automated compliance in global financial services, and specifically at developing a “shared standard to connect blockchain-based identity with existing infrastructure and regulatory frameworks.”

The paper argues that blockchain-based digital identity can address the core inefficiencies in identity verification processes rooted in a fragmented model. The blockchain model builds on the established ISO 17442 Legal Entity Identifier (LEI) standard and the verifiable LEI (vLEI), which provide a standardized way to prove an organization’s identity.

GLEIF says the system is more efficient and offers better interoperability, allowing verifications to be securely accessed and shared between multiple entities.

“Instead of validating and storing customer data in-house, organizations can use cryptographic proofs, which can verify that a user meets key identity requirements without exposing their private information,” the report says.

“These proofs can then be tied to digital identities onchain. Combined with vLEIs, organizations can have certainty around the identity of a counterparty and share relevant identity attributes on a need-to-know basis when transacting onchain, all while maintaining the ability to enforce their own policies and protect user privacy when using shared identity data.”

By reducing the need to verify the same data repeatedly across institutions, the blockchain model streamlines compliance, minimizes data exposure and speeds up onboarding.

GLEIF has also introduced a new initiative to accelerate the adoption of the LEI and vLEI. A release says the Global Partners Program brings together data vendors, financial institutions and technology leaders to foster collaboration and innovation, offering partners global exposure, strategic insights, and opportunities to showcase (v)LEI-enabled solutions.

Article Topics

blockchain  |  digital identity  |  financial services  |  GLEIF  |  interoperability  |  Legal Entity Identifier (LEI)