Telefónica’s digital business unit, Telefónica Tech, launches an innovative sovereign identity solution based on verifiable credentials, designed to help companies and public bodies adapt to the European Union’s new legal and technical framework on digital identity. This framework is based on the Self-Sovereign Identity (SSI) and the EUDI Wallet project, which will come into force at the end of 2026 in all Member States.

Self-Sovereign Identity (SSI) represents a paradigm shift in digital identity management, giving people full control over their identity in digital environments. Thanks to this model, users can decide what identity information they share, with whom and at what time, using secure, verifiable credentials. This new way of managing digital identity allows us to reduce the exposure of personal data and improve trust in online services.

Digital identity credentials

From the point of view of organizations, sovereign identity facilitates the issuance, validation and revocation of digital identity credentials in an efficient, interoperable and compliant way. This translates into more agile, secure and transparent processes, both for public administrations and private companies.

Telefónica Tech’s sovereign identity solution implements these principles and allows organizations to issue and manage verifiable identity credentials that users store directly on their device. For example, in a registration process, the City Council can issue a digital identity card instead of a PDF, allowing the citizen to securely prove their residence to third parties when necessary.

In addition, Telefónica Tech offers specialized professional services to accompany organizations in the adoption of sovereign digital identity. Among these services, TrustOS stands out, its blockchain platform, which reinforces the traceability and transparency of identity, allowing you to know when a credential has been shared, who has issued it, and whether it is still valid or has been revoked.

According to Elena Gil Lizasoain, Director of AI and Data at Telefónica Tech: “Our sovereign identity solution is designed to help public administrations and companies anticipate the new European digital identity framework and allow employees, customers and citizens to maintain control over their identity on the Internet. Identity is a critical asset and must be managed with total transparency throughout its entire life cycle.”

Sovereign Identity Enterprise Use Cases

Telefónica Tech’s sovereign identity solution allows users to securely demonstrate attributes of their digital identity through verifiable credentials. To do this, organizations only need to show a QR code that the user scans from their device to share their identity in a controlled way.

The development of sovereign digital identity opens multiple applications in the business field. On the one hand, it allows users to decide when and how they use their identity credentials, sharing only the necessary information and guaranteeing a secure and legitimate transfer of data. On the other hand, companies access identity data verified by third parties, reducing identity fraud and improving the security of their processes.

Among the main use cases of sovereign identity are the issuance of digital identity credentials and certificates – such as registrations, driver’s licenses or ZBE accreditations -, age proofs without the need to show the full DNI, access management based on digital identity in critical infrastructures or restricted spaces, and the prevention of identity fraud in online purchasing processes.

The Telefónica Tech company complements the solution with professional services and blockchain technology through TrustOS, which reinforces the traceability and transparency of the use of credentials. Thus, organizations can efficiently issue, verify and revoke digital credentials, ensuring interoperability and regulatory compliance. A practical case would be the issuance of a registration certificate by a city council, which instead of being sent in PDF would be issued as a verifiable digital credential.