Global Trade Digital Passports Developed Through Collaboration Between GLEIF and IOTA
In a significant step towards the broader digitalization of global trade, the Global Legal Entity Identifier Foundation (GLEIF) and the IOTA Foundation have joined forces to explore new ways of bringing secure digital identity to international trade networks.
The partnership, which focuses on integrating the Legal Entity Identifier (LEI) system with distributed ledger technology, aims to deliver a digital framework that makes proving organizational identity faster, safer, and more transparent. This initiative could pave the way for a future where companies rely on digital passports to navigate international supply chains, fostering inclusivity and reducing barriers to entry for smaller enterprises.
Both organizations share the view that trusted digital identities are essential for making international trade more inclusive and efficient. The IOTA Foundation, having recently made progress in digital identity development with the introduction of the alpha release of its decentralized identity framework earlier in March, is well-equipped to contribute to this endeavour.
The collaboration will form part of IOTA's Trade Worldwide Information Network (TWIN), a decentralized infrastructure designed to support real-time data exchange across borders. By bringing verifiable credentials onto blockchain systems, the two organizations aim to address long-standing challenges in trust, compliance, and efficiency across borders.
The system will support interoperability, enabling businesses to establish their digital identities within either the LEI or IOTA ecosystems and reuse them across both. This approach is expected to simplify processes for participants in global supply chains by ensuring that digital identities can be authenticated quickly and securely.
The project, a proof of concept already underway, has the focus on enabling organizations to create instant trust on-chain. The new system will allow companies to verify their identities instantly during online transactions, customs checks, and cross-border payments. It is anticipated that this will reduce fraud, accelerate supply chain processes, and promote transparency.
The combined expertise of both entities is aimed at developing scalable solutions. The partnership between GLEIF and IOTA underscores a broader shift toward digitized, interoperable solutions in global trade infrastructure. This collaboration is a step toward a more connected, efficient, and inclusive global trade ecosystem.
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