The Global Legal Entity Identifier Foundation (GLEIF) has released a new blockchain identity report that explores the future of digital identity and automated compliance in global financial services, focusing specifically on creating a “shared standard to connect blockchain-based identity with existing infrastructure and regulatory frameworks. ” The report asserts that blockchain-based digital identity can resolve fundamental inefficiencies in identity verification processes caused by a fragmented system. This blockchain approach leverages the established ISO 17442 Legal Entity Identifier (LEI) standard and the verifiable LEI (vLEI), which offer a standardized method to confirm an organization’s identity. According to GLEIF, this system is more efficient and provides improved interoperability, enabling verifications to be securely accessed and shared among multiple entities. “Instead of validating and storing customer data internally, organizations can utilize cryptographic proofs to verify that a user meets essential identity criteria without revealing their private information, ” the report states. “These proofs can then be linked to digital identities on-chain.

When combined with vLEIs, organizations gain certainty regarding a counterparty’s identity and can share relevant identity attributes on a need-to-know basis during on-chain transactions, all while retaining the ability to enforce their own policies and protect user privacy when handling shared identity data. ” By reducing redundant verification of the same data across institutions, the blockchain model enhances compliance efficiency, lowers data exposure, and accelerates onboarding. Additionally, GLEIF has launched a new initiative to boost the adoption of the LEI and vLEI. According to a press release, the Global Partners Program unites data vendors, financial institutions, and technology leaders to encourage collaboration and innovation, providing partners with global visibility, strategic insights, and chances to showcase (v)LEI-enabled solutions.