The future of corporate identity: The role of LEI and vLEI in 2025 and beyond

25 febrero 2025

Why organisations need a Legal Entity Identifier (LEI) in the digital world

As global businesses increasingly embrace tokenisation, decentralised identity and AI-driven compliance technologies, the demand for reliable, scalable and interoperable digital identity solutions is skyrocketing. One of the most revolutionary developments in corporate identity verification is the Legal Entity Identifier (LEI) and the verifiable LEI (vLEI). These innovations enable automated authentication and verification of companies and improve financial transactions’ security, transparency and efficiency.

Organisations looking to apply for an LEI number or go through the LEI application process should be aware of the growing importance of securing their transactions and preventing fraud. In this article, we explain why businesses in the US and UK should prioritise obtaining an LEI and how the introduction of the vLEI is transforming the digital economy.

Strengthening financial security with LEI and vLEI

One of the biggest challenges for organisations is increased financial fraud and regulatory scrutiny. Organisations that apply for an LEI number receive a globally recognised identifier that improves security and regulatory compliance. The Financial Stability Board (FSB) and regulators such as the Financial Action Task Force (FATF) advocate the broader adoption of LEIs to combat fraud and strengthen financial stability.

The vLEI goes one step further by providing an automated, cryptographically verifiable identity for businesses and their representatives. This ensures that transactions remain secure, transparent and compliant with evolving global regulations. Financial institutions, regulators and business leaders increasingly recognise the vLEI as a ground-breaking tool for digital trust.

Combating deepfakes and identity fraud with vLEI

At a time when deepfake fraud and identity misuse are on the rise, organisations need to prioritise verifiable digital identity. AI-generated deception poses a significant risk to organisations, making it essential to verify both the sender and the content of corporate communications.

The vLEI addresses this problem by providing a tamper-proof identity verification mechanism that ensures the legitimacy of messages, transactions and documents. Industries such as telecommunications rely on vLEI to minimise fraudulent activity and increase customer confidence.

Optimising global trade and supply chains with LEI

The digital transformation of global trade is another area where the LEI and vLEI offer significant benefits. According to ICC UK, only 1-2% of trade documents are processed digitally, leading to inefficiencies and financial bottlenecks. Companies can optimise trade processes and ensure compliance with international standards by applying for an LEI number.

By using LEI and vLEI, companies can:

– Reduce administrative burdens

– Increase efficiency in cross-border trade

– Strengthen security in the supply chain

– Improve transparency in the ESG (environmental, social and governance) area

The introduction of LEI-based digital identifiers already shows great potential to unlock trillions of dollars in economic opportunities worldwide.

How to apply for an LEI number

If your organisation is ready to improve security and compliance, you can apply for an LEI number. This is easily done through accredited providers. The LEI application process is straightforward and usually requires the submission of relevant documents for verification.

The transition from LEI to vLEI will soon be a crucial step for organisations looking to future-proof their corporate identity. The increasing standardisation of the vLEI will ensure that it is seamlessly integrated into financial ecosystems and regulatory frameworks.

Conclusion: The future is verifiable

As organisations in the US and UK navigate the digital landscape, LEI and vLEI adoption will play a central role in ensuring financial security, regulatory compliance and operational efficiency. Businesses that proactively apply for an LEI number and embrace verifiable identity solutions will thrive in an increasingly digitised and trust-based economy.

Now is the right time for organisations to invest in LEI and vLEI to secure their future in a world where identity verification and security are paramount.