GLEIF and IOTA Partner to Build Digital Passports for Global Trade

The Global Legal Entity Identifier Foundation (GLEIF) has joined forces with the IOTA Foundation to explore new ways of bringing secure digital identity to international trade networks. The collaboration focuses on integrating the Legal Entity Identifier (LEI) system with distributed ledger technology to create verifiable credentials for organizations engaged in cross-border transactions.

As outlined in the announcement, the initiative will examine how LEIs and verifiable LEIs (vLEIs) can streamline identity verification processes for global supply chains. By combining GLEIF’s system of unique company identifiers with IOTA’s decentralized infrastructure, the partnership intends to deliver a digital framework that makes proving organizational identity faster, safer, and more transparent.

Building a cross-border digital identity system

The project will form part of IOTA’s Trade Worldwide Information Network (TWIN), a decentralized infrastructure designed to support real-time data exchange across borders. Through this integration, companies are expected to gain access to a blockchain-based digital passport that works internationally. The partners highlighted that the system will support interoperability, enabling businesses to establish their digital identities within either the LEI or IOTA ecosystems and reuse them across both.

A proof of concept is already underway, with the focus on enabling organizations to create instant trust on-chain. The approach is expected to simplify processes for participants in global supply chains by ensuring that digital identities can be authenticated quickly and securely.

Benefits for businesses of all sizes

According to the collaboration framework, the new system will allow companies to verify their identities instantly during online transactions, customs checks, and cross-border payments. This efficiency is expected to reduce fraud, accelerate supply chain processes, and promote transparency. Smaller businesses, in particular, could benefit from easier access to international partners and funding opportunities, helping them integrate more seamlessly into global commerce.

GLEIF leadership emphasized that both organizations share the view that trusted digital identities are essential for making international trade more inclusive and efficient. They highlighted that the best way to achieve this vision lies in adopting decentralized, open-source infrastructures that foster transparency and interoperability. The partnership was described as a step toward broader digitalization of global trade, with the combined expertise of both entities aimed at developing scalable solutions.

Driving trust and compliance in global trade

The IOTA Foundation echoed similar views, pointing out that integrating verifiable organizational identities directly into supply chain processes could significantly reduce friction. By streamlining compliance requirements and improving efficiency, the initiative could create new opportunities for businesses of varying sizes to participate in global commerce.

This collaboration follows IOTA’s recent progress in digital identity development. Earlier in March, the foundation introduced the alpha release of its decentralized identity framework, which marked a key milestone in its commitment to strengthening trust in online systems.

A step toward digital trade transformation

Market analysts note that the partnership between GLEIF and IOTA underscores a broader shift toward digitized, interoperable solutions in global trade infrastructure. By bringing verifiable credentials onto blockchain systems, the two organizations aim to address long-standing challenges in trust, compliance, and efficiency across borders.

As discussions around secure and transparent trade systems intensify, the 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.