The European Busienss Wallet (EUBW) and Legal Person Identity: Redefining Trust in the EU’s Digital Economy

How the Spherity EUBW and Enterprise EUDI Wallet Drives Compliance, Transparency, and Innovation Across Industries

1. Executive Summary

Trust across jurisdictions remains a global challenge. Current frameworks lack consistency and interoperability, making it difficult to establish trust in international supply chains and industrial ecosystems.

The European Commission’s Competitiveness Compass, introduced by Ursula von der Leyen in January 2025, outlines key actions to strengthen Europe’s economic and technological leadership. A major initiative within this framework is the European Business Wallet (EUBW), envisioned as the cornerstone of seamless digital business interactions across the EU. Building upon eIDAS 2.0 (EU №910/2014), the EUBW aims to simplify regulatory compliance and enhance digital trust for businesses.

“With the European Business Wallet, we will simplify business-to-business and business-to-government exchanges for businesses. In addition to facilitating secure data exchange, the business wallet would unlock new business opportunities for trust service providers.” Source: EU Commission Work Programme 2025.

Hence, the European Business Wallet (EUBW) provides a breakthrough solution for industrial use cases and supply chains within the European Union (EU). With its unified and secure infrastructure, the EUBW (also known as “EUDI Wallet for Organizations”) solves the trust problem for the EU bloc, enabling seamless and compliant interactions among organizations, governments, and individuals.

While many supply chains operate globally and may not immediately adopt the European Business Wallet technology and trust models, these systems could integrate with other jurisdictional trust infrastructures, creating a multi-polar digital economy. The EUBW ensures that the EU has a consistent and reliable foundation for trust, allowing it to plug into this broader global digital landscape while maintaining regulatory and operational integrity.

It is also important to note that many downstream supply chains and regulatory frameworks, particularly those governed by EU-specific directives, operate exclusively within EU jurisdictions. For these cases, the legal person identity capabilities of the European Business Wallet are a game-changer. They enable the secure next-level digitization of processes like perpetual master data management, regulatory compliance, and sustainability reporting, fostering innovation and efficiency within the EU.

Note: As the terminology in regulatory definitions is evolving and the term European Business Wallet (EUBW) is relatively new, we will use the term EUDI Wallet for Organizations instead.

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TL;DR — Key Highlights

a) Why the EUDI Wallet for Organizations Is Important

• Provides a unified framework for identity and trust, replacing siloed, inconsistent systems.

• Solves trust challenges within EU jurisdictions, enabling secure, compliant data exchange.

• Establishes a foundational infrastructure that plugs the EU into a multi-polar digital economy.

b) Vertical and Horizontal Ecosystems

• Horizontal ecosystems provide foundational trust layers (e.g., identity and standards) that span industries.

• Vertical ecosystems focus on domain-specific use cases like supply chain traceability, financial compliance, and energy data sharing.

• EUDI Wallets bridge these ecosystems, enabling interoperability and trust across diverse domains.

c) Transient Trust

• EUDI Wallets solve the problem of transient trust by enabling real-time, verifiable trust relationships between previously unknown parties.

• They ensure secure data sharing and regulatory compliance without delays, fostering innovation and efficiency.

d) Perpetual Master Data Management (MDM)

• EUDI Wallets support Perpetual MDM, automating the continuous synchronization and validation of enterprise data.

• This eliminates manual updates, ensures data accuracy, and enables real-time decision-making.

• Use cases include financial KYC/KYS, supply chain transparency, and energy grid balancing.

e) Use Cases Across Key Sectors

• Financial Services: Automated onboarding with perpetual KYC/KYS, enabling secure and compliant data sharing.

• Energy: Data exchange for smart meters, grid balancing, and flexibility aggregation while protecting critical infrastructure.

• Supply Chains: Issuing and verifying Digital Product Passports (DPPs) for transparency, sustainability, and compliance.

• Industry 4.0: Establishing authorization chains from business registries to machines, enabling seamless DPP issuance and automated workflows.

• AI and Cyber-Physical Systems: Introducing AI Service Passports to ensure the ethical and compliant use of AI, including tracking provenance, training data, and validation processes.

f) Spherity’s EUDI Wallet Capabilities and Experiences

• Spherity has developed an advanced EUDI Wallet tailored for enterprises, enabling identity management and compliance across multiple domains.

• Spherity collaborates with business registries like Bundesanzeiger Verlag in Germany and compliance credential issuers like Legisym in the U.S. to provide primary-source validated credentials. These credentials enable secure, verifiable compliance and cyber-security use cases across industries.

• The wallet integrates seamlessly into vertical ecosystems, offering solutions for perpetual master data management, supply chains, energy, Industry 4.0, and AI.

• Proven expertise in decentralized identity and contributions to international standards make Spherity a trusted partner for EUDI Wallet implementation.

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The EUDI Wallet provides a foundational trust infrastructure for Europe, solving challenges of identity, compliance, and interoperability within the EU. It bridges vertical and horizontal ecosystems, supports transient trust, and drives next-level digitization in critical industries. Moreover, it positions the EU to actively participate in a multi-polar digital economy, with secure and scalable solutions that can integrate with global trust frameworks.

The “EIDA” Cloud-based Spherity EUDI Wallet for Organisations (a.k.a. European Business Wallet, EUBW) in Patnership with Bundesnazeiger Verlag. Source: Spherity EIDA Wallet.

Whether you are an enterprise seeking to streamline compliance, a regulator aiming to unify standards, or a technology provider exploring wallet integration, the time to act is now. Partner with Spherity to lead your industry into a future of trusted, connected, and data-driven ecosystems. Together, we can build a secure digital future that fosters innovation, transparency, and compliance.

2. Introduction

EUDI Wallets are the backbone of the EU’s digital identity framework. Under eIDAS 2.0, they serve as secure tools to store and manage digital credentials. Initially designed for natural persons, EUDI Wallets enable individuals to authenticate their identities, sign documents, and access services across borders. This technology supports trust, interoperability, and seamless interactions in the digital ecosystem.

The focus is now expanding from individuals to enterprises. Businesses need trusted tools to manage their digital identities, comply with regulations, and exchange data securely. Enterprise use cases — spanning financial services, energy, supply chains, and Industry 4.0 — present a significant opportunity for growth and innovation. The shift acknowledges that legal persons play a pivotal role in modern economies, requiring robust identity and trust frameworks.

Spherity is at the forefront of this evolution. With deep expertise in decentralized identity, we understand and shape key digital identity trends while designing solutions tailored for enterprises.

Our partnership with Bundesanzeiger Verlag, a trusted source for German corporate registry data, strengthens the reliability of enterprise credentials. Through this collaboration, we provide businesses with verified data directly from primary sources, enabling efficient Know Your Business Partner (KYBP) processes and seamless compliance.

From contributing to international standards to integrating with government registries, Spherity ensures that EUDI Wallets address the unique needs of businesses in regulated industries. Our work bridges public and private sectors, creating scalable and trusted identity solutions for the future.

For more on eIDAS and EUDI Wallets, visit the EU Digital Identity Initiative and explore Spherity’s role here.

3. State of the Play

The EUDI Wallet initiative began with a focus on citizens:

Initially, the primary goal was to provide individuals with secure, interoperable tools to manage personal identification. Citizen wallets under eIDAS 2.0 allow users to authenticate their identities, access public and private services, and digitally sign documents across EU member states. These wallets laid the groundwork for the digital identity infrastructure, emphasizing trust and seamless usability for natural persons.

The focus is now shifting to supply chain and industrial use cases:

Legal persons, such as companies and organizations, face increasing demands for trusted identity verification and secure data exchange. The transition to enterprise wallets addresses critical needs in regulated industries, enabling compliance, process automation, and cross-border data sharing. Business opportunities abound in sectors like finance, energy, supply chains, and Industry 4.0. These industrial use cases promise not only to enhance operational efficiency but also to unlock new business models by fostering trust and collaboration.

However, there are gaps in current standards and frameworks:

The Architectural Reference Framework (ARF) under eIDAS 2.0 has yet to define clear requirements for enterprise wallets. While individual wallets are well-documented, enterprise-specific functionalities like organizational hierarchies, group-level credentials, and multi-layered authorizations remain underexplored. This lack of clarity poses challenges for businesses looking to adopt and integrate EUDI Wallet solutions.

Work on protocol standards is underway:

Organizations such as CEN and CENELEC are addressing these gaps by developing standards for enterprise wallets. Their focus includes creating interoperability protocols and aligning with international standards to ensure seamless integration across ecosystems. This work is critical to scaling the adoption of EUDI Wallets for enterprises, ensuring that they meet the needs of diverse industries while maintaining compliance with EU regulations.

The evolving landscape reflects a strategic shift. By expanding beyond citizen-focused solutions, the EUDI Wallet initiative is poised to become a cornerstone for digital trust in industrial applications, paving the way for a more connected and secure digital economy.

4. Key Differences: Natural Person vs. Legal Person Wallets

EUDI Wallets for natural persons and legal entities serve distinct purposes and target different user groups.

Purpose and Target Audience

• Natural Person Wallets (Citizen Wallets): These wallets are designed for individuals. They allow citizens to manage their personal identity credentials, access public and private sector services, and securely share personal documents like diplomas, driver’s licenses, or ID cards.

• Legal Person Wallets (Organizational Wallets): These wallets cater to legal entities, such as companies and organizations. They manage enterprise-specific credentials like business licenses, compliance certificates, powers of attorney, and contracts. Organizational Wallets must also support user management systems that enable multiple members within an organization to receive, store, and present these credentials as needed.

Type of Credentials

• Citizen Wallets: Primarily store personal credentials such as IDs, academic certificates, or healthcare data. These are used in interactions between individuals and service providers.

• Organizational Wallets: Manage business-related credentials essential for an organization’s legal and operational functions. Examples include compliance certificates, regulatory approvals, and verifiable credentials for supply chain management, such as Digital Product Passports. Organizational Wallets must also allow individuals to demonstrate specific permissions within the organization, such as signatory rights.

Delegation of Rights

• Citizen Wallets: Identity management is typically in the hands of the individual user. Delegation of rights is rare, though cases like guardians managing credentials for minors exist.

• Organizational Wallets: Delegation of rights is essential. Organizational Wallets allow designated members to act on behalf of the organization. For instance, an employee with signatory authority can sign contracts or documents on behalf of the company. These delegated rights are issued as cryptographically secured credentials, specifying the representatives and their scopes of authority.

User Interaction and Use Cases

• Citizen Wallets: Designed for individual use cases, such as accessing government services, signing documents, or managing personal health records. Interaction is typically manual, requiring user input.

• Organizational Wallets: Support complex and often automated use cases involving multiple parties. Examples include compliance management, KYC (Know Your Customer) and KYS (Know Your Supplier) processes, DPP management, and supply chain transactions.

Data Volume and Diversity

• Citizen Wallets: Manage a limited and standardized set of personal credentials, such as IDs, travel and health records.

• Organizational Wallets: Handle diverse, semanticallcy rich, and large volumes of business credentials. This includes compliance certifications, contract documents, DPPs, and operational data tailored to various business processes and industry requirements.

User and Permission Management

• Citizen Wallets: Feature straightforward user management, as they are tied to a single individual.

• Organizational Wallets: Require advanced role and permission management. They need to represent multiple organizational members with varying roles and authorizations. For instance, administrators can assign roles and adjust permissions within a central interface, ensuring security and flexibility.

Security and Scalability

• Citizen Wallets: Offer standard security measures like encryption, key management with a smart decice secure element, and PIN/biometric authentication.

• Organizational Wallets: Require robust cryptographic mechanisms to manage and delegate rights securely. These include multi-layered authorization processes and verifiable credentials to establish authority chains within the organization. Organizational Wallets must also integrate secure HMS modules and ensure 24/7 availability for seamless operations across global supply chains.

Interoperability and API Integration

• Citizen Wallets: Focus on user-friendly graphical interfaces (Human-UI) for manual interactions.

• Organizational Wallets: Prioritize API integrations to enable automation and machine-to-machine data exchanges. For instance, enterprise systems like ERP or SCM platforms can directly access wallet data for automated processes such as compliance checks or DPP management.

Insights from Spherity’s Research in the European Wallet Consortium (EWC)

Our EWC GitHub discussion highlights that Organizational Wallets must meet the following advanced requirements:

1. Authorization Chains: Manage complex hierarchies, such as issuing credentials from parent companies to subsidiaries or departments.

2. Credential Lifecycle Management: Support updates, renewals, and revocation of organizational credentials.

3. International Standards and Interoperability: Ensure cross-border usability by adhering to global standards and APIs, enabling seamless integration with diverse business ecosystems.

By addressing these distinctions, EUDI Wallets for legal persons can provide powerful tools for compliance, automation, and trust in business ecosystems.

Warning: Due to these distinctions, we do not recommend naively copying and pasting the Citizen EUDI Wallet stack for organizational use cases.

Instead, legal person wallets must be specifically designed and tailored to address the unique challenges and complexities of organizational processes, ensuring they meet the demands of compliance, scalability, and interoperability in business ecosystems.

Learn more about our work: European Wallet Consortium (EWC) Large Scale Pilot (LSP)

5. Commodity Infrastructure and Domain-Specific Extensions: Capturing Real-world Business Value in Vertical Doamins

The EUDI Wallet is a foundational component of Europe’s digital identity framework.

Vertical and Horizontal Ecosystems

The accompanying chart demonstrates the structured interplay between vertical and horizontal wallet ecosystems. Vertical ecosystems address domain-specific challenges and requirements, such as compliance in financial services, operational efficiency in manufacturing, and data governance in energy. Horizontal ecosystems, in contrast, provide a foundational trust framework encompassing identity verification, conformance governance, and legal compliance.

The Case for Transient Trust: Interlinked vertical and horizontal EUBW and EUDI wallet ecosystems. Source: Spherity GmbH.

For example:

• Vertical Trust Domains: Systems like Catena-X, Manufacturing-X, and energy data-X are tailored to specific industries, addressing challenges such as supply chain transparency, critical infrastructure security, and product lifecycle traceability.

• Horizontal Trust Domains: The horizontal layer provides general-purpose identity and compliance frameworks. It enables interoperability between vertical ecosystems by standardizing protocols and ensuring a common layer of trust.

This architecture emphasizes the EUDI Wallet’s role as commodity infrastructure while allowing vertical extensions to drive innovation and business value in specialized domains.

EUDI Wallet as a Commodity Infrastructure

At its core, the EUDI Wallet provides essential identity management capabilities:

• Secure storage and exchange of Personal Identifiers (PIDs) and Organizational Digital Identifiers (ODIs).

• Protocols and mechanisms for issuing, verifying, and presenting verifiable credentials.

• Compliance with overarching European regulations, such as eIDAS 2.0.

These horizontal functionalities create the baseline infrastructure necessary for interoperability and trust across industries. However, the EUDI Wallet itself is not where significant business value resides.

Business Value in Vertical Extensions

The business value emerges from vertical, domain-specific extensions built on top of the EUDI Wallet infrastructure. While the horizontal layer ensures compliance and acts as the commodity baseline, vertical extensions solve real-world, industry-specific problems. This is where entrepreneurs and product innovation managers should focus their efforts:

1. Tailored Problem-Solving: Vertical extensions address unique pain points within industries, such as automating KYC/KYB in financial services, ensuring compliance with supply chain regulations like LKSG, or managing secure data exchange in energy markets.

2. Ecosystem Enablement: By bridging organizations within a specific domain, these extensions enable secure data sharing and foster collaboration across complex ecosystems.

3. Next-Level Innovation: With increased cyber-security measures, compliance automation, and digital innovation, vertical solutions bring measurable value to businesses by reducing risk, increasing efficiency, and enabling new business models.

Strategic Call for Action

Entrepreneurs, ecosystem leaders, and product managers should prioritize building vertical ecosystem solutions that leverage the horizontal EUDI Wallet infrastructure.

By focusing on cyber-security, compliance automation, and domain-specific innovation, they can deliver tangible business value while addressing the increasing demands for trust and transparency in data-sharing ecosystems.

This strategic approach will accelerate digital transformation and set the stage for long-term success in Europe’s interconnected, data-driven economy.

6. Transient Trust across Digital Ecosystems

Transient trust refers to establishing temporary, purpose-specific trust relationships between parties — whether businesses (B2B), governments (B2G), or individuals (B2C) — with no prior interactions or pre-existing trust. It ensures that sensitive data can be securely shared, verified, and acted upon in real-time for a specific interaction or transaction.

Why is This Problem Not Solved Yet?

The current digital ecosystem struggles to implement transient trust due to several challenges:

1. Siloed Identity Systems:

Current frameworks exist in isolated silos, tailored to specific domains or jurisdictions. For example, supply chains rely on their proprietary verification processes, while energy sectors use domain-specific mechanisms. This fragmentation hampers cross-domain or cross-border trust.

2. Lack of Standardization:

There is no universal standard for verifying and validating identities or credentials. Each domain defines its assurance levels and trust frameworks, creating inconsistencies, especially for legal entities interacting in B2B or B2G contexts. Gaia-X, for instance, attempts to address this but lacks a unifying foundational trust layer for legal and natural persons.

3. Manual and Time-Consuming Processes:

Verifications today often involve physical documentation, manual workflows, and inconsistent criteria, making it impossible to establish real-time or transient trust.

4. Data Privacy and Compliance Challenges:

Regulations like GDPR require strict control of sensitive data. However, current frameworks do not enable secure, interoperable data sharing across entities while ensuring compliance. Sensitive critical infrastructure data (e.g., energy usage) remains vulnerable to adversarial misuse without robust mechanisms.

5. Risk of Fraud and Data Tampering:

Without cryptographically verifiable credentials, existing systems cannot guarantee the authenticity or integrity of shared data, exposing organizations to fraud risks.

6. Inconsistent Levels of Assurance (LOA):

Different ecosystems use their own criteria and controls to define Levels of Assurance, such as identity verification rigor, credential validity, and access controls. These varying standards make interoperability across domains nearly impossible.

How Does the EUDI Wallet Solve These Problems?

The EUDI Wallet provides a consistent foundational trust framework that solves the transient trust challenge across ecosystems. It ensures a common Level of Assurance for natural and legal persons, overcoming fragmentation and enabling real-time, secure interactions. Here’s how:

1. Cryptographically Verifiable and Revocable Credentials:

The EUDI Wallet supports the issuance, sharing, and verification of cryptographically secured credentials, ensuring authenticity and tamper-proof data. Revocation mechanisms allow for real-time status updates, preventing the use of outdated or invalid credentials.

2. Consistent Levels of Assurance Across Ecosystems:

Unlike fragmented ecosystems (e.g., Gaia-X Data Space Domains), the EUDI Wallet provides a unified LOA model. Whether onboarding a supplier in a supply chain, sharing grid data in the energy sector, or granting individual access to healthcare services, the wallet ensures a consistent trust level. This interoperability simplifies cross-domain interactions and compliance.

3. Automated Trust Establishment in Real-Time:

APIs enable instant onboarding of new participants in ecosystems, such as granting a previously unknown supply chain actor access to Digital Twin or Digital Product Passport data. Access controls are governed by compliance frameworks (e.g., ESPR, anti-trust laws, GDPR) and based on cryptographically verifiable credentials.

4. Data Privacy with Selective Disclosure:

The wallet allows users to share only the data required for a specific interaction, ensuring GDPR compliance. For instance, in the energy sector, data is shared exclusively between Legal Persons of Legitimate Interest (PLI) to protect sensitive infrastructure information from adversaries.

5. Alignment with EU Regulations:

The EUDI Wallet is designed to comply with European standards, such as eIDAS 2.0, ensuring seamless cross-border interoperability for both natural and legal persons. Its integration with regulated data spaces like Gaia-X enhances trust without relying solely on proprietary or fragmented frameworks.

Impact on B2B, B2G, and B2C Interactions

• B2B: The wallet enables secure, automated trust relationships across supply chains, financial services, and data spaces. For example, an energy provider can verify a supplier’s compliance credentials instantly before granting access to sensitive data.

• B2G: Governments can simplify compliance checks, licensing, and regulatory processes by validating business credentials through the wallet. Real-time trust ensures efficiency and transparency.

• B2C: For individuals, the wallet streamlines access to public and private services while ensuring privacy. For example, citizens can verify their eligibility for healthcare benefits without exposing unnecessary personal information.

EUDI Wallet: A Foundational Solution for Levels of Assurance

By providing a consistent LOA across all ecosystems, the EUDI Wallet addresses the core issue of interoperability and trust.

Unlike Gaia-X, which lacks the execution excellence to establish a universal trust mechanism, the EUDI wallet’s standardisation, trust & compliance mechanisms, cryptographic credentials and compliance automation create a unified trust framework.

Looking ahead, we anticipate the integration of EUDI Wallets standards with Gaia-X’s data-sharing infrastructure. Such a move would significantly lower adoption barriers, as the EUDI Wallet is a pan-EU project accepted by all member states. In contrast, initiatives like Catena-X or Manufacturing-X, while valuable, are primarily driven by the German R&D ecosystem. This narrower focus could pose challenges for broader adoption due to the “not invented here” problem, where solutions originating from specific countries or ecosystems may face resistance in international or pan-European contexts.

Leveraging EUDI Wallets standards ensures secure, reliable, and scalable interactions across diverse ecosystems, from supply chains to critical infrastructure.

The EUDI Wallet introduces a paradigm shift in transient trust by standardizing LOA across ecosystems. It solves the critical challenges of siloed systems, inconsistent assurance levels, and regulatory compliance. By enabling secure, real-time trust relationships, the wallet fosters innovation and efficiency in B2B, B2G, and B2C contexts, creating a robust foundation for Europe’s digital economy.

7. Enterprise Use Case Deep Dives

The success of modern enterprises increasingly depends on their ability to establish secure and verifiable identities for organizations, products, processes, and even cyber-physical systems. Identity lies at the core of compliance, trust, and transparency, enabling enterprises to navigate complex regulatory landscapes and interconnected global markets while protecting critical infrastructure and digital assets. The EUDI Wallet plays a crucial role in this transformation, acting as a foundational infrastructure that enables enterprises to manage verifiable credentials, support compliance, and foster trust across diverse use cases.

The diagram below highlights how secure and verifiable identity underpins key capabilities such as cooperative master data management, supply chain transparency, supply chain resilience, and the security of cyber-physical systems.

By integrating EUDI Wallets, enterprises can extend the EUDI Wallet’s capabilities to include onboarding verification, Digital Product Passport issuance, perpetual master data management, process auditability, and the secure operation of interconnected machines and systems in open ecosystems, ensuring that systems interact only with authorized supply chain or trading partners (ATP) and their systems.

For cyber-physical systems and critical infrastructures, the EUDI Wallet ensures that machines, devices, and AI agents are authenticated and authorized, providing robust protection against unauthorized access, tampering, and cyber threats. These measures are critical for safeguarding industrial operations, ensuring process integrity, and supporting secure data exchange in Industry 4.0 environments.

This section explores how these capabilities translate into practical applications across industries, showcasing the pivotal role of the EUDI Wallet and the Spherity Wallet in enabling compliance, security, efficiency, and innovation.

Secure and verifiable identity as essential critical success factor for enterprise use cases. Source Spherity GmbH.

7.1 Financial Services and Industrial Data Sharing Ecosystems

In financial services, industrial supply chains, cyber-physical systems and interconnected ecosystems in general, trust is essential. It underpins compliant on-boarding, secure data sharing and ensures compliance in interconnected ecosystems.

KYC and KYS as Foundational for Data Space Onboarding

Know Your Customer (KYC) and Know Your Supplier (KYS) are essential processes for building trust in financial services and data-sharing ecosystems.

The EUDI Wallet mechanisms verify the identities of organizations and individuals, ensuring compliance with regulations while automating onboarding and minimizing risks like fraud or money laundering.

For data spaces, such as those outlined in Gaia-X or Catena-X, onboarding participants requires rigorous identity validation to establish a trusted environment for secure data exchange.

The Potential Role of EUDI Wallets in Meeting Instant Payment Regulation (IPR) Requirements

The Instant Payments Regulation (IPR), Regulation (EU) 2024/886, aims to accelerate the adoption of euro-denominated instant credit transfers across the EU. Adopted on 13 March 2024, the regulation ensures that payments are processed within ten seconds, 24/7, across member states, making instant payments widely available, secure, and affordable. To meet these goals, IPR mandates that payment service providers (PSPs) offering standard euro transfers must also provide instant payment services without charging higher fees than standard credit transfers. European Central Bank, European Council of the EU.

To comply with IPR, PSPs must implement several controls, including verifying payer identities, performing IBAN-name matching, conducting sanctions screening, and ensuring fraud prevention. These steps ensure security and compliance but are traditionally time-consuming and resource-intensive when done manually.

The European Digital Identity (EUDI) Wallet offers a game-changing solution. By integrating legal person identity and IBAN credentials, the EUDI Wallet enables automated compliance with IPR controls at the API level. It securely stores verified identity attributes, including IBANs, and allows machine-to-machine interactions for real-time identity verification, authorization, and compliance checks.

Using the EUDI Wallet provides the following benefits:

• Identity and Machine Authorization: It verifies the identities of individuals, organizations, and machines, ensuring only authorized entities engage in transactions.

• Automated IBAN Verification: The wallet enables seamless IBAN-name matching and account validation, reducing errors and fraud risks.

• Regulatory Compliance: It automates sanctions screening, fraud detection, and other regulatory requirements, ensuring real-time compliance with IPR mandates.

• Operational Efficiency: By automating onboarding and verification, the EUDI Wallet eliminates manual processes, reduces administrative burdens, and ensures secure, instant transactions.

• Enhanced Security: Cryptographic mechanisms ensure that identity credentials and transaction data are tamper-proof, mitigating risks like fraud or money laundering.

The integration of EUDI Wallets with instant payment systems supports IPR compliance by automating critical verification processes and enabling real-time transactions. Adopted right, the EUDI Wallet could significantly streamline payment processes.

KYC for B2B Hybrid Crypto and Identity Wallets, Stablecoins, and Remittances

Implementing effective KYC procedures in hybrid Digital EURO, Central Bank Digital Currency (CBDC) or crypto assets ecosystems, which combine the digital EURO and cryptocurrencies with traditional financial systems, is critical for compliance and trust. These systems, which include stablecoins, cross-border payments, remittances, and M2M transactions, require robust identity verification mechanisms tailored for B2B use cases.

In this context, identity wallets play a pivotal role. They store and exchange Verifiable Credentials, ensuring secure and perpetual KYC processes. Businesses can use these wallets to present credentials, such as Legal Entity Identifiers (LEIs) or financial statements, during transactions.

For stablecoins and remittances, regulatory compliance necessitates verifying Ultimate Beneficial Owners (UBOs) and conducting sanction list checks in real-time on an API level for individual transactions. Integrating identity wallets with existing system APIs establishes automation of these checks, ensuring tamper-proof and auditable compliance.

Hybrid crypto systems with identity wallets enable seamless cross-border payments, ensuring compliance with global KYC and AML standards. They enhance transparency, reduce fraud, and foster secure financial transactions.

Spherity’s Collaboration with Bundesanzeiger Verlag and the European EUDI Wallet Consortium

Spherity has partnered with Bundesanzeiger Verlag, a leading source of authentic corporate registration data in Germany. This collaboration allows Spherity to issue credentials such as Legal Person Identifiers (legal PIDs), Company Certificates, and other verifiable business attributes directly from primary sources. By integrating these validated credentials into EUDI Wallets, businesses gain instant access to reliable identity data that can be leveraged for compliance and cross-border interactions.

In the European EUDI Wallet Consortium, Spherity is actively contributing to the development of standardized semantics and vocabularies. These efforts ensure interoperability across data spaces, enabling legal entities to exchange credentials seamlessly within and across industries. The vocabulary architecture hosted on oid.spherity.com is a cornerstone of this work, defining attributes such as Power of Attorney (PoA) and other business-critical identifiers.

Importance of Primary-Source Validated Data for Transient Trust and Data Spaces

Primary-source validated data ensures the highest level of trustworthiness, as it originates from authoritative registries like trade registers or governmental bodies. In data spaces, this validation is crucial for achieving transient trust, a concept where temporary but highly reliable trust relationships are established during specific interactions. This approach minimizes dependencies on long-term trust models and supports dynamic ecosystems, making it a game-changer for financial services and beyond.

Perpetual KYC/KYS with Automated Monitoring and Updates

Spherity is advancing the concept of Perpetual KYC/KYS, which automates the continuous monitoring and updating of customer or supplier records. By detecting material changes — such as changes in ownership, regulatory status, or compliance data — organizations can maintain up-to-date records without manual intervention. This perpetual system not only improves operational efficiency but also ensures ongoing compliance with evolving regulations. This initiative marks a significant step toward perpetual master data management, where data is consistently accurate and current.

Strategic Business Implications

The integration of KYC/KYS into EUDI Wallets offers transformative potential. By enabling seamless onboarding to data spaces, these wallets help organizations reduce costs, streamline compliance, and foster trust in digital ecosystems. Entrepreneurs and product managers should explore how automated and perpetual KYC/KYS solutions can unlock new efficiencies in financial services and cross-industry collaboration.

Learn more: Digital Organisational Identities as a Catalyst for Sustainable Finance

7.2 Digitization of Contractual Agreements with a Unified EUDI Wallet Solution-How to avoid the “Wallet Dance”

The EUDI Wallet provides a seamless framework for digitizing contractual agreements between organizations, ensuring both efficiency and legal compliance. By securely storing and managing various types of digital identities and credentials — including those of natural persons, legal entities, and machines — it streamlines processes and enhances trust across digital interactions. This capability is especially relevant for modern industrial ecosystems like Industry 4.0, where automated and secure interactions are critical.

Natural Person Identity

A natural person’s identity includes attributes such as name, date of birth, and nationality. In the EUDI Wallet, these attributes are stored as Person Identification Data (PID), serving as the foundational identity. For example, in Germany, PID is derived from the electronic ID function of the national identity card (Bundesdruckerei). This provides an authenticated base for actions such as signing contracts and granting authorizations.

Legal Person Identity

Legal person identity refers to credentials that represent organizations or entities, such as company name, registration number, and legal status. These credentials, managed within the EUDI Wallet, enable organizations to verify their legal standing in digital transactions, ensuring compliance and trust across jurisdictions.

Machine Identity

In the context of Industry 4.0, machines often need to autonomously interact and transact. Assigning digital identities to machines enables secure machine-to-machine (M2M) communication. This ensures only authorized devices can participate in automated processes, such as executing smart contracts or sharing sensitive operational data.

Unified Enterprise Wallet Solution

By integrating natural person, legal person, and machine identities into a single EUDI Wallet, organizations achieve the following:

1. Seamless Authorization Chains

The EUDI Wallet supports establishing clear authorization hierarchies. For example, Power of Attorney (PoA) credentials allow natural persons to delegate specific responsibilities to other individuals or machines. These credentials ensure that actions — whether by a person or machine — are authorized and traceable, enabling accountability in digital ecosystems.

2. Chained Credentials

Linking multiple credentials creates a verifiable chain of trust. For instance, a machine’s operational authority can be traced back to a natural person’s authorization. This capability is especially valuable for ensuring trust in automated processes, such as data sharing or contract execution.

3. Machine Authorization Chains

Similar to natural persons, machines can also be authorized through hierarchical credentials. For example, a group can authorize a subsidiary, which in turn authorizes a location, and finally a specific machine. This is critical for automating processes like sharing sensitive data or issuing digitally signed Digital Product Passports, ensuring only authorized machines participate.

4. Avoiding the “Wallet Dance”

Traditionally, users switch between personal EUDI smart wallets and enterprise cloud wallets, a process that complicates tasks like contract signing. By incorporating natural person identities into the enterprise cloud wallet, the EUDI Wallet eliminates this friction, enabling seamless operations without toggling between applications. This improves efficiency and user satisfaction.

Digitizing the Contract Process

The EUDI Wallet digitizes the contractual agreement process, ensuring seamless, legally compliant workflows. This includes:

1. Power of Attorney and Authorized Signatory Checks

The wallet verifies whether individuals are authorized to sign on behalf of an organization by utilizing natural person identity credentials combined with PoA records. This ensures legal validity and trust between parties.

2. Secure Digital Signing with Legal Compliance

Using eIDAS 2.0 standards, the wallet enables secure digital signing of contracts, ensuring compliance across EU jurisdictions. Cryptographic mechanisms protect the authenticity, integrity, and legal enforceability of the signed agreements.

3. Integration into Enterprise Systems & Data Sharing Ecosystems

Signed contracts can be integrated into ERP systems or other enterprise applications, enabling automated checks for future interactions. For example, an ERP system can verify whether a data-sharing agreement exists before authorizing M2M communication.

4. Future-Ready Collaboration

Digitally stored and validated contracts within the wallet can be reused for ongoing interactions, such as automated invoicing, secure data sharing, or compliance reporting. This eliminates the need for repeated manual validations, streamlining operations.

The EUDI Wallet is a transformative tool for securely managing diverse identities — natural person, legal person, and machine — and automating processes such as contract signing, data sharing, and compliance checks. By integrating capabilities like authorization chains, chained credentials, and legal-compliant digital signing, it provides a unified framework for secure, efficient, and trustworthy interactions in Industry 4.0 and beyond.

Learn more: Vocabularies | OID Data Model

7.3 Perpetual Master Data Management: Examples and Facts

Perpetual Master Data Management (MDM) refers to the ongoing, automated synchronization and validation of critical business data between organizations and primary-source registries. These primary sources can include well-known registries such as business registries, governed domain-specific registries (e.g., registries documenting a “license to operate”), or even the master data systems of business partners. It operates in real-time, ensuring that data remains accurate, consistent, and reliable throughout the lifecycle of your business relationships.

Perpetual KYC/KYS Cycle for Master Data Management (MDM) using verifiable, revocable credentials. Source: Spherity GmbH.

The Perpetual KYC/KYS Cycle, as illustrated in the chart, forms the foundation for perpetual MDM. It includes the following key capabilities:

• Automated Retrieval of Verified Data: Primary-source validated records are continuously acquired, ensuring that the latest and most accurate data is always available.

• Continuous Monitoring: Business data is monitored in real-time for changes that could impact compliance or operational decisions.

• Material Change Detection: Risk-based policies identify significant changes, such as updates to company ownership, financial statuses, or regulatory compliance.

• Dynamic Record Updates: Customer or supplier records are automatically updated based on detected changes, ensuring data accuracy without manual intervention.

This perpetual approach can be applied to various industries:

• Financial Services: Automated KYC/KYS processes keep compliance records current, reducing risks and streamlining onboarding for new customers or suppliers as well as event-driven and periodic reviews. It is the reviews that are significantly driving compliance costs.

• Supply Chains in General: Perpetual MDM enables automated on-boarding processes as well as tracking and managing product data and certifications, ensuring regulatory compliance and facilitating seamless coordination across global supply chains.

• Digital Twins in General: APIs can onboard previously unknown supply chain actors, granting them controlled access to digital twins or Digital Product Passport data in milliseconds. Access is regulated by Zero Trust Architecture (ZTA) security controls and compliance controls, including codes of conduct, ESPR (e.g., legal person of legitimate interest), anti-trust regulations, or export controls such as dual-use goods policies. This automation ensures that compliance and trust are maintained without slowing down digital business processes.

• Retail: Perpetual MDM allows companies to maintain accurate product information across sales channels, enhancing operational efficiency and customer satisfaction.

• Media Industry: Continuous validation ensures accurate tracking of origin, AI processing, intellectual property, licensing data, and content distribution rights, fostering trust and transparency across media supply chains.

Advanced technologies such as artificial intelligence (AI) and machine learning (ML) are integral to implementing perpetual MDM. These tools enable:

• Automated Data Validation: Cross-referencing data against external sources to ensure accuracy.

• Real-Time Anomaly Detection: Identifying discrepancies or unusual activity in data sets.

• Predictive Analytics: Proactively managing data governance by anticipating potential issues or changes.

“The use of verifiable and revocable credentials represents a paradigm shift in data management. Instead of merely updating records in your own database, it introduces the ability to revoke outdated data sets and issue new, revocable credentials.

This enables business partners to detect status changes in real-time and, through APIs, automatically request and process both updated and revoked data, fostering greater safety, compliance, transparency and automation in data exchange.”, Carsten Stöcker, CEO Spherity GmbH

By minimizing manual intervention, perpetual MDM reduces errors and enhances data reliability. This approach ensures that businesses operate with accurate, actionable information, creating a solid foundation for compliance, operational efficiency, and innovation.

7.4 Energy Sector

The energy sector is critical infrastructure, requiring secure and efficient data exchange to ensure reliable operations, compliance, and data privacy. The growing complexity of renewable integration and digitalized energy systems has intensified the need for advanced data management solutions.

Critical Infrastructure and Sensitive Data Exchange Needs

In the energy sector, data exchange involves highly sensitive information such as consumption patterns, grid status, operational forecasts, and billing details. These data often qualify as personally identifiable information (PII) under GDPR and are classified as sensitive critical infrastructure data. Ensuring data security is essential to prevent adversaries from exploiting vulnerabilities, protect privacy, and maintain the operational integrity of energy systems.

To address these risks, it is crucial that sensitive data be shared exclusively between legal persons of legitimate interest (legal PLI). This ensures compliance with GDPR and protects critical infrastructure from unauthorized access or misuse.

Smart Meter Public Key Infrastructure (PKI) in Germany and Evolution under eIDAS 2.0

Germany’s Smart Meter PKI system leverages eIDAS 1.0 as a foundation to secure communication between smart meters and energy providers. It ensures that meter data is encrypted and authenticated, preventing tampering and unauthorized access. With the evolution of eIDAS 2.0, this infrastructure will be further enhanced by incorporating trust services like electronic identification and authentication, enabling secure, seamless, and regulated data exchange across the EU.

Use Cases: Meter Data Exchange, Forecasting, Billing, Flexibility Aggregation, and Grid Balancing

• Meter Data Exchange: Secure and accurate data exchange is essential for energy management, enabling real-time monitoring, regulatory compliance, and demand response measures.

• Forecasting: Access to real-time and historical meter data enables grid operators and energy providers to generate accurate demand and supply forecasts. This data-driven approach optimizes energy generation, minimizes waste, and reduces costs for both providers and consumers.

• Billing: Reliable and secure exchange of consumption data ensures precise billing and customer transparency. Automated data exchange reduces manual errors and strengthens consumer trust.

• Flexibility Aggregation: Variability in renewable energy sources requires pooling flexible resources, such as energy storage or demand-side management, to stabilize supply-demand imbalances. Real-time data exchange enables efficient aggregation and utilization of these resources, enhancing grid stability.

• Grid Balancing: Maintaining grid balance is critical to prevent outages and ensure energy reliability. Real-time data sharing among grid operators, power producers, and flexibility providers enables immediate action to stabilize the grid and optimize energy flow.

energy data-X Project (ed-X)

The energy data-X project aims to create a cross-sector data space tailored to the energy industry. By establishing a secure and sovereign system for data exchange, it fosters innovative business models and operational efficiency. The project adopts Gaia-X standards, ensuring interoperability, trust, and compliance with EU regulations.

A key focus of energy data-X is addressing the sensitive nature of energy data by enforcing access control through legal PLI mechanisms. This ensures that only authorized and verified legal persons can access critical data, supporting GDPR compliance and protecting infrastructure from adversaries.

Additionally, the project supports use cases such as real-time energy tracking, forecasting, and flexibility management, aligning with EU energy transition goals and enabling carbon neutrality. Secure data sharing in the energy sector is critical not only for regulatory compliance but also for operational efficiency and infrastructure security.

Projects like energy data-X pave the way for a digitalized energy ecosystem, where sensitive data can be shared responsibly and used to enhance grid stability, optimize energy resources, and enable climate-neutral operations. Robust EUDI wallets will be a key enabled to achieve these goals.

Learn more: Securing the Grid: Averting the Unseen Threats in Our Cyber-physical Energy Infrastructure

7.5 Supply Chain

Supply chains are increasingly complex, spanning multiple geographies, industries, and regulatory frameworks. Trust and identity are foundational to ensuring smooth and compliant operations, particularly in global and EU-specific supply chains.

Identity and Trust Challenges in Supply Chains

Supply chains face significant challenges in managing identity and trust, including:

1. Global Nature of Supply Chains: Supply chains often span across jurisdictions with differing legal and regulatory frameworks. This complicates verifying the identities of suppliers, manufacturers, and logistics partners.

2. Fragmented Systems: Each supply chain participant typically uses its own systems for managing credentials and compliance. These siloed approaches hinder data exchange and transparency.

3. Lack of Verifiable Credentials: Many supply chain participants still rely on traditional documentation, which can be falsified, tampered with, or become outdated. This increases the risk of fraud and regulatory non-compliance.

4. Regulatory Compliance: EU regulations like the Corporate Sustainability Due Diligence Directive (CSDDD) and Ecodesign for Sustainable Products Regulation (ESPR) require verified data for compliance. Without robust identity and trust mechanisms, meeting these standards is challenging.

The Role of Catena-X and Spherity’s Work on International Standards

Catena-X is a prominent initiative aimed at creating a standardized, secure, and transparent data ecosystem for the automotive industry. It addresses identity and trust challenges by:

• Enabling Interoperability: Catena-X leverages decentralized identity solutions to ensure seamless data exchange across the supply chain.

• Implementing Standards: By establishing common standards for data sharing and verifiable credentials, Catena-X ensures that all participants can interact on a level playing field.

Spherity plays a crucial role in advancing the work of Catena-X and other supply chain initiatives. Its contributions include:

1. International Standards Development: Spherity collaborates with global standardization bodies to create interoperable frameworks for decentralized identity. This ensures that identity solutions are not only EU-compliant but also usable across global supply chains.

2. Credentialing Solutions: Spherity provides verifiable credentials for supply chain participants, ensuring that critical information — such as company certifications, compliance records, and product data — is authenticated and trustworthy.

3. Technology Demonstrators: Through projects like Catena-X, Spherity showcases how decentralized identity and trust solutions can enhance supply chain transparency and efficiency.

EU-Specific Use Cases

The EU has identified several critical use cases where identity and trust are essential in supply chains:

Digital Product Passports:

• DPPs are central to the EU’s sustainability goals. They provide a comprehensive record of a product’s lifecycle, including its origin, components, and environmental impact.

• For example, in the automotive sector, a DPP can track a vehicle’s carbon footprint, materials used, and recyclability.

• Spherity enables secure issuance and verification of DPPs using EUDI Wallets, ensuring that data is trustworthy and accessible across the supply chain.

Raw Material Strategies:

• The EU aims to secure access to critical raw materials, such as rare earth elements, while ensuring ethical sourcing. Identity solutions enable:

• Verification of raw material origins, ensuring compliance with EU regulations like the Conflict Minerals Regulation.

• Credentialing of suppliers to track and trace raw materials within and outside the EU.

Compliance and Due Diligence:

• Supply chain participants must meet strict due diligence requirements under regulations like CSDDD. Identity and trust mechanisms enable:

• Real-time verification of supplier compliance with labor, environmental, and governance standards.

• Seamless sharing of compliance data across the supply chain.

Prominent EU Projects: Trace4EU and MaDiTraCe

The Trace4EU and MaDiTraCe projects rely on robust organizational identity to ensure accurate and reliable traceability across supply chain actors. Organizational identity forms the foundation for verifying and authenticating entities involved in product lifecycle tracking and compliance processes. Trace4EU, MaDiTraCe Project

By integrating EUDI Wallet technologies, these projects enable the secure issuance and management of verifiable provenance credentials. This alignment with the EUDI Wallet framework enhances their ability to meet regulatory requirements and drive authentic sustainable and ethical supply chain practices, in the spirit of the EU Green Claims Initiative.

Trace4EU

This project enhances traceability across sectors by leveraging the European Blockchain Services Infrastructure (EBSI) — which will eventually be Europe’s Qualified Electronic Ledger Infrastructure. For supply chains, Trace4EU enables:

• Transparent tracking of goods and data, such as the lifecycle of metals used in battery production or food supply chains.

• The use of decentralized systems to verify the correctness, integrity, and validity of information, strengthening supply chain transparency and compliance.

MaDiTraCe

Focused on critical raw materials, MaDiTraCe integrates material fingerprinting and blockchain-based digital traceability. This ensures:

• Full traceability of raw materials like lithium, cobalt, and rare earth elements through Digital Product Passports.

• Compliance with EU sustainability and ethical sourcing requirements by merging material data with certification systems.

Identity and trust are critical enablers for the modern supply chain. By addressing challenges like fragmented systems, regulatory compliance, and global interoperability, initiatives like Catena-X and Spherity’s work on international standards are driving progress.

Identity and trust are critical enablers for the modern supply chain. By addressing challenges like fragmented systems, regulatory compliance, and global interoperability, initiatives like Catena-X, Trace4EU, and MaDiTraCe, along with Spherity’s expertise, are driving progress.

EU-specific use cases such as DPPs and raw material strategies demonstrate the practical value of these solutions in ensuring transparency, sustainability, and compliance across supply chains. Together, these efforts are paving the way for a secure, efficient, and trustworthy supply chain ecosystem.

7.6 Industry 4.0

Industry 4.0 is built on interconnected ecosystems where machines, organizations, and individuals collaborate in automated workflows. In this landscape, trust, identity, and verifiability are critical for seamless operations and regulatory compliance.

Authorization Chains: From Business Registries to Machines

In Industry 4.0, the concept of an authorization chain extends trust and identity from business registries down to individual machines and devices. This chain includes:

1. Business Registry Validation: The journey begins with verifiable credentials issued to an organization by trusted business registries, such as trade registers or tax authorities. These credentials verify the organization’s legal status and compliance.

2. Organizational Delegation: Within the organization, roles and responsibilities are delegated to departments, subsidiaries, or specific employees. For example, a compliance manager may be authorized to manage supply chain credentials.

3. Machine-Level Identity: Finally, machines or industrial devices within the organization are assigned unique verifiable credentials. These credentials allow machines to authenticate their role in automated processes, such as production or data exchange, and to issue Digital Product Passports.

Such authorization chains ensure that every action, from production to data sharing, is backed by cryptographic trust and traceable accountability.

The Role of EUDI Wallets in Enabling DPP Issuance and Data Space Identity

EUDI Wallets are essential for enabling Digital Product Passports and supporting identity within data spaces:

• Digital Product Passports: DPPs contain verifiable data about a product’s lifecycle, such as its origin, composition, and compliance. EUDI Wallets allow organizations and machines to issue DPPs with cryptographically secured credentials. This ensures that the data in the passport is trustworthy and tamper-proof.

• Data Space Identity: In collaborative data spaces, such as Manufacturing-X or Gaia-X, participants need secure, interoperable identities to exchange data. EUDI Wallets provide this foundational identity, ensuring that every participant — whether an organization, department, or machine — is authenticated and authorized.

  
  

The combination of DPPs and data space identities allows for seamless integration of Industry 4.0 ecosystems, enabling transparency, compliance, and efficiency in global supply chains.

The EU Commission’s Vision: Integrating DPPs, Data Spaces, and EUDI Wallets

The European Commission envisions a future where EUDI Wallets, Data Spaces, and DPPs are integrated into a cohesive digital infrastructure. This integration supports:

1. Sustainability Goals: DPPs play a key role in circular economy initiatives by providing detailed information about product recyclability and compliance with EU environmental standards like ESPR (Ecodesign for Sustainable Products Regulation).

2. Interoperability: By leveraging EUDI Wallets as a foundational trust layer, the EU ensures that data spaces across industries — from automotive to energy — can operate seamlessly, sharing verifiable information without duplicative or siloed systems.

3. Automation and Innovation: The integration enables automated workflows where machines and systems independently interact, verify data, and make decisions. For instance, a machine could autonomously verify raw material compliance before initiating production.

This vision supports Europe’s broader digital transformation agenda, enabling trust, transparency, and innovation in Industry 4.0 ecosystems. By combining EUDI Wallets, DPPs, and data spaces, the EU is creating a digital framework that is secure, interoperable, and future-ready.

Learn more: The Future of the Resilient Industrial Internet enabled by modern identity, trust, and data space technologies

7.7 AI and Cyber-Physical Value Chains

In the era of digital transformation, the convergence of AI and cyber-physical systems has revolutionized value chains across various industries. Providing strong organisational identity for ensuring the authenticity, integrity, and provenance of data, products, and AI models within these interconnected systems is paramount.

Importance of Provenance in Digital and Cyber-Physical Supply Chains

Provenance refers to the detailed history of data or products, encompassing their origins, transformations, and the entities involved in their lifecycle. In digital and cyber-physical supply chains, provenance is crucial for several reasons:

• Authenticity Verification: Provenance information enables stakeholders to verify the authenticity of data, products, or AI models, ensuring they originate from trusted sources.

• Traceability: Comprehensive provenance records allow for tracking the journey of data, products, or AI models through their respective lifecycles, facilitating accountability and transparency.

• Compliance and Risk Management: Maintaining detailed provenance supports compliance with regulatory requirements and aids in identifying and mitigating risks associated with data breaches, product recalls, or unethical AI practices.

• Quality Assurance: Provenance data helps in monitoring quality control processes, ensuring that products, datasets, or AI models meet specified standards throughout their lifecycle.

Parallels Between Product Lifecycle Traceability and Data Provenance for AI

The concept of provenance in AI data parallels the traceability mechanisms used in product lifecycles, such as Digital Product Passports, and extends to a new framework known as AI Service Passports.

• Provenance of the AI Model: The origin and version history of the AI model or agent.

• Training Data: Details about the datasets used to train the AI, ensuring transparency and traceability.

• Ethical Sourcing of Training Data: Verification that the data used was collected ethically and in compliance with legal and privacy standards.

• Testing and Validation: Comprehensive records of the AI model’s performance, testing environments, and validation results, ensuring that the model meets expected standards of accuracy and safety.

The Role of AI Service Passports

AI Service Passports serve as a critical tool for building trust in AI-driven systems. By documenting every aspect of an AI model’s lifecycle, these passports ensure that AI systems are:

• Developed using ethically sourced and high-quality data.

• Tested and validated to meet transparency, accuracy, and safety standards.

• Operated in compliance with regulations, such as GDPR or ethical AI guidelines.

By integrating AI Service Passports into AI systems, organizations create a unified framework for trust and transparency, ensuring that AI-driven processes and decisions are reliable, trustworthy, and verifiable. These passports provide a detailed record of AI models’ origins, training data, and validation, confirming ethical practices and regulatory compliance.

Combined with Digital Product Passports and provenance mechanisms, AI Service Passports bridge the gap between physical and digital domains, fostering confidence, accountability, and innovation across interconnected value chains.

Learn more: Beyond the AI Noise: Authenticity & Provenance in the Digital Sphere

8. Spherity’s EUDI Wallet

The Spherity EUDI Wallet, developed in partnership with Bundesanzeiger Verlag, is a cutting-edge solution for enterprise identity management, designed to meet the needs of businesses operating in interconnected ecosystems. It offers robust capabilities for managing verifiable credentials, enabling compliance, fostering trust, and ensuring interoperability across diverse use cases and industries.

Capabilities for Enterprise Identity Management

Spherity’s wallet provides enterprises with the tools to manage and exchange identity-related credentials securely and efficiently. Key capabilities include:

• Verifiable Credential Management: Secure issuance, storage, sharing, and revocation of credentials for organizations, individuals, and machines.

• Decentralized Identity: Support for decentralized identity standards ensures trust without reliance on central authorities, making the wallet highly resilient and adaptable.

• Granular Access Control: Enterprises can delegate specific roles and permissions to users or machines, enabling complex workflows such as authorization chains in Industry 4.0.

• Integration with Primary Registries: The wallet connects with trusted primary sources, such as business registries and domain-specific databases, for issuing validated credentials.

• Cross-Domain Interoperability: Compliance with standards like eIDAS 2.0 ensures that credentials are interoperable across different industries, jurisdictions, and ecosystems.

Enabling Compliance, Trust, and Interoperability

The Spherity Wallet plays a central role in ensuring regulatory compliance, fostering trust, and enabling interoperability:

• Compliance: The wallet supports compliance with regulations such as GDPR, ESPR, and supply chain due diligence directives. Its ability to issue cryptographically secure, verifiable credentials ensures adherence to industry and legal standards.

• Trust: By integrating primary-source validation and revocable credentials, the wallet ensures that all shared information is authentic, tamper-proof, and trustworthy.

• Interoperability: The wallet is designed to seamlessly integrate with data spaces, vertical ecosystems, and domain-specific platforms, enabling efficient data exchange and collaboration.

Integration into Vertical Use Case Domains

The Spherity Wallet is tailored to support vertical use cases, leveraging its capabilities to solve specific challenges in key domains:

• Onboarding for Financial Services: Automates KYC and KYS processes with perpetual updates and compliance monitoring.

• Perpetual Master Data Management: Enables real-time synchronization, monitoring, and validation of enterprise and supply chain data.

• Energy Sector: Facilitates secure exchange of sensitive data for use cases like smart meter data sharing, grid balancing, and flexibility aggregation.

• Supply Chains: Supports the issuance and verification of Digital Product Passports, ensuring transparency, sustainability, and compliance across global and EU-specific supply chains.

• Industry 4.0: Provides machine-level identity for authorization chains and facilitates automated processes like DPP issuance within interconnected production systems.

• AI and Cyber-Physical Value Chains: Introduces AI Service Passports, enabling traceability, validation, and compliance for AI systems and their training data.

The Spherity Wallet is a comprehensive solution for enterprise identity management, offering the foundational infrastructure needed for secure, interoperable, and compliant interactions across industries. By integrating seamlessly into vertical ecosystems, it enables businesses to address domain-specific challenges while benefiting from a unified trust framework. This adaptability ensures that the Spherity Wallet not only meets current demands but also drives innovation in emerging fields like AI, Industry 4.0, and sustainable supply chains.

9. Outlook and Call to Action

The EUDI Wallet represents a foundational shift in how trust, identity, and compliance are managed across industries. As industries embrace digital transformation, EUDI Wallets will serve as a catalyst, enabling seamless interactions between businesses, governments, and individuals in secure, verifiable, and interoperable ecosystems.

Accelerating Digital Transformation

EUDI Wallets will drive transformation across industries by:

• Standardizing Trust: Providing a unified trust framework that ensures consistency in identity verification and compliance across sectors and jurisdictions.

• Enhancing Efficiency: Automating onboarding, compliance processes, and data sharing, reducing costs and time while improving accuracy.

• Fostering Innovation: Enabling new business models and use cases, such as perpetual master data management, AI Service Passports, and Digital Product Passports, which are critical for sustainability, transparency, and competitiveness.

This technology will redefine how enterprises and governments collaborate, paving the way for a data-driven economy that is resilient, efficient, and secure.

Collaborating on Standards and Ecosystem Building

To unlock the full potential of EUDI Wallets, collaboration among stakeholders is essential:

• Develop Use Cases: Stakeholders from various industries should actively explore and implement domain-specific use cases to maximize the value of EUDI Wallets.

• Establish Standards: Aligning on interoperable standards will ensure seamless integration across ecosystems and industries, enhancing scalability and trust.

• Build Ecosystems: Governments, enterprises, and technology providers must work together to create interconnected ecosystems that leverage EUDI Wallets for secure and transparent interactions.

Spherity as your Trusted Partner with Huge Industry Domain Experience

Spherity is uniquely positioned to support enterprises and governments in adopting and implementing EUDI Wallet solutions. With expertise in decentralized identity, verifiable credentials, and domain-specific use cases, Spherity provides:

• Tailored Solutions: Enterprise wallet solutions designed for industries such as finance, energy, supply chains, and Industry 4.0.

• Standards Leadership: Contributions to international standardization efforts to ensure interoperability and compliance.

• Trusted Expertise: Proven experience in building secure, compliant, and innovative solutions for regulated industries.

Call to Action

The digital future requires trust, transparency, and interoperability. Act now to become a part of this transformation:

• For Enterprises: Identify your use cases and explore how EUDI Wallets can drive efficiency, compliance, and innovation in your operations.

• For Regulators and Standards Bodies: Collaborate on building a unified framework for trust, ensuring that ecosystems remain secure, interoperable, and future-proof.

• For Technology Providers: Partner with Spherity to develop scalable, secure, and compliant wallet solutions tailored to your industry needs.

Contact Spherity today to start your journey with EUDI Wallets and lead the transformation of your industry into a trusted, connected, and data-driven ecosystem. Together, we can build the foundation for the future of identity, trust, and compliance.

About Spherity

Spherity is a German decentralized digital identity software provider, bringing secure identities to enterprises, machines, products, data, and even algorithms. Spherity provides the enabling technology to digitalize and automate compliance processes in highly-regulated technical sectors. Spherity’s products for enterprise wallets and object identity empower cyber security, efficiency, and data interoperability among digital value chain actors.

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