The rise of the Legal Entity Identifier (LEI): security and trust for digital assets

7 Ocak 2025

Digital transformation in the financial sector

The financial sector is at a turning point: digital assets, once niche products, have become an indispensable pillar of the global economic system. Financial market infrastructures (FMIs) and banks are using this innovation to optimise internal processes and improve global services. The key to this revolution? Standardised digital corporate identities such as the Legal Entity Identifier (LEI).

What is the Legal Entity Identifier (LEI)?

The Legal Entity Identifier (LEI) is a unique, ISO-standardised identifier that provides companies worldwide with a unique digital identity. Introducing the verifiable LEI (vLEI), a cryptographically verifiable and fully digital solution makes corporate identification more secure, efficient and interoperable. The vLEI enables companies to instantly authenticate and verify their legal status, ownership, and representative structure – a crucial step in an increasingly digitalised financial world.

The role of the LEI in the world of digital assets

The introduction of digital assets has massively increased the need for globally standardised identity solutions. Cross-platform standards such as the LEI create trust by enabling seamless and secure transactions. The LEI number, complemented by the vLEI, provides the basis for secure trading of digital assets on different platforms. This is particularly relevant as flexibility and interoperability are essential in the digital financial infrastructure.

Advantages for companies

With the Legal Entity Identifier, companies benefit from several advantages:

Security and transparency:

the LEI ensures trustworthy identification, making misuse and fraud more difficult.

Interoperability:

As a globally standardised solution, the LEI enables cross-platform transactions, which increases efficiency.

Regulatory compliance:

The LEI helps companies fulfil growing regulatory requirements.

FMIs and banks: bridge builders of the new financial infrastructure

Financial market infrastructures (FMIs) are evolving from centralised to decentralised systems. The Legal Entity Identifier (vLEI) plays a central role in this transition by enabling secure, automated, and trustworthy verification processes. These solutions not only create trust between legal entities but also promote the transparency and integrity of global markets.

Challenges and opportunities

Despite digital assets’ immense opportunities, FMIs and banks face challenges such as regulatory uncertainty and technological risks. However, the Legal Entity Identifier provides a reliable basis to overcome these hurdles while realising the full potential of digital assets

Conclusion: Why the LEI is indispensable

The Legal Entity Identifier (LEI) is more than just a number—it is the key to a secure and transparent digital financial infrastructure. Companies that rely on the LEI and vLEI at an early stage not only secure a competitive advantage but also actively shape the future of global finance.

Register your LEI number now and benefit from the advantages of a globally standardised corporate identity!