Tokenisation, compliance and trust: The new role of the LEI in DeFi

1 července 2025

Organisational identity as the foundation for a stable digital financial system

In an increasingly digitalised financial world, the Legal Entity Identifier (LEI) plays a key role. The rapid spread of digital assets and decentralised financial systems (DeFi) requires a uniform, globally recognised organisational identity, and this is precisely where the LEI comes in. LEI registration is becoming a crucial prerequisite for creating trust, transparency and regulatory security.

LEI number as a bridge between traditional and digital finance

While decentralised finance platforms have often operated outside of the established financial system to date, new regulatory initiatives are increasingly bringing them to the centre of global attention. The integration of the LEI number into regulatory frameworks, such as the EU Regulation on Markets in Crypto Assets (MiCA), emphasises the relevance of the LEI. From April 2025, providers of crypto-asset services will be required to provide a valid LEI number upon authorisation. This not only sets a global precedent but also highlights the importance of standardised identity assignment through LEI registration.

Trust through verifiable identity: the vLEI on the rise

The blockchain industry is increasingly recognising the advantages of a cryptographically secured, verifiable LEI—the so-called vLEI. This adds digital authenticity to the traditional LEI, enabling fully automated compliance processes. Projects such as the cooperation between Chainlink and GLEIF demonstrate how vLEI-based proof of identity can reduce costs, enhance data protection, and fulfil regulatory requirements more efficiently.

Global standards for interoperable compliance

Regulatory authorities are increasingly focusing on the LEI not only in the EU but also worldwide. The UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) are currently reviewing the integration of the LEI number into their regulatory requirements. The LEI thus functions as a universal identifier that replaces fragmented identity verification processes, significantly facilitating international compliance.

Tokenisation and smart contracts: LEI as an innovation accelerator

As Larry Fink, CEO of BlackRock, emphasises, ‚Every share, every bond, every fund—every asset—can be tokenised.‘ But without digital identity verification, this potential remains untapped. The LEI makes it possible to link smart contracts and digital assets with verifiable legal entity identities. This not only simplifies the onboarding process but also massively improves security at the blockchain level.

Conclusion: Why LEI registration is crucial now

A trustworthy, interoperable organisational identity is not a „nice-to-have“ but a „must-have“ for the future of digital financial markets. LEI registration is the crucial step in providing a stable foundation for businesses, regulators, and technology providers. With the LEI and vLEI, institutions can responsibly shape the digital transformation and pave the way to a more inclusive, efficient financial world for all.