How to Get Your Business Ready for EUDI & eIDAS 2.0 by 2026

The European Digital Identity (EUDI) and eIDAS 2.0 regulatory framework redefines the EU digital identity landscape by introducing a standardized digital wallet for secure, cross-border authentication. This evolution builds on existing eIDAS principles, enhancing security, user control, and trust while expanding the scope of digital identity beyond government-issued identification to include verifiable credentials (VCs) for private sector use.

With the European Commission scheduled for the widespread implementation of the European Digital Identity Wallet by 2026, businesses have limited time to align with the new requirements. Failing to prepare could leave your organization struggling to meet compliance standards, maintain interoperability, and deliver a reliable user experience — damaging customer trust and market position. As regulatory and technological developments progress, businesses must act now to ensure they remain competitive and compliant.

What Are the Implications for Businesses and Enterprises?

The integration of EUDI and eIDAS 2.0 introduces both challenges and opportunities for businesses operating in the EU digital landscape:

1. Regulatory Compliance: Private institutions in sectors such as banking, online platforms, telecommunications, and healthcare must be prepared to support digital document issuance and verification—or risk dissuasive penalties as potentially determined by each Member State.
2. Strengthened Security: Improved identity verification and authentication standards are strengthening trust in digital interactions by reducing risks of fraud, identity theft and unauthorized access.
3. Cross-Border Interoperability: Businesses operating across multiple EU jurisdictions must ensure their identity solutions support standardized identity exchange across member states for interoperability and security requirements.
4. Frictionless Customer Experience: Seamless and standardized authentication simplifies user onboarding and enables faster interactions, reducing abandonment rates in commercial transactions.
5. Innovation Opportunities: New identity verification models open avenues for fintech, regtech, and online service providers to develop and integrate new value-added services.
6. Cost and Risk Reduction: Streamlined identity verification processes reduce operational and compliance costs. Stronger security and fewer fraud incidents also lower financial and reputational risks, improving overall efficiency.

How Can Your Company Prepare for EUDI / eIDAS 2.0?

As the regulatory framework continues to evolve, organizations should take a proactive approach to ensure compliance and technical alignment. For companies utilizing secure technologies like Hyperledger Indy and Aries — these remain robust solutions and additional technologies will be needed to make these compatible with EUDI at present. Whether your organization is currently using an identity management system or you starting from the minimum, here are key preparation strategies:

• Gap Analysis: Evaluate your current identity systems against EUDI technical requirements and trust model to identify compliance gaps.
• Bridging (Interoperability) Solutions: Implement middleware or translation layers that enable interoperability between existing secure platforms (e.g., Hyperledger Indy/Aries) and EUDI-compliant standards (OpenID4VC, SD-JWT, mDoc).
• Incremental Integration: Develop a phased roadmap to gradually introduce EUDI-compatible modules while maintaining your current solution.
• Security and Compliance Readiness: Evaluate and update identity verification mechanisms to meet new regulatory standards while ensuring compliance with GDPR and data protection mandates.
• Stakeholder Engagement: Collaborate with regulatory bodies, industry consortiums, and identity service providers to stay ahead of compliance requirements and implementation best practices.

Key Technological Enhancements

EUDI and eIDAS 2.0 integrate advanced verifiable credential (VC) protocols and formats, ensuring secure and adaptable digital identity operations:

• OpenID4VC (OpenID for Verifiable Credentials): An extension of OpenID Connect, enabling issuance and verification of VCs.
• SD-JWT (Selective Disclosure JWT): Enables privacy-preserving verification by allowing credential holders to share only the necessary attributes.
• mDoc: Part of ISO/IEC 18013-5, this format refers to the structure and specifications for mobile driver’s licenses and similar credentials representing ID documents.

These standards promote a more dynamic and user-centric identity ecosystem, minimizing reliance on traditional centralized authentication models.

Is It Too Early to Prepare?

No. While the full implementation of EUDI and eIDAS 2.0 is still underway, companies that take early action will gain a strategic advantage. Benefits of early preparation include:

• Avoiding last-minute compliance challenges by aligning solutions and infrastructure with evolving technical and regulatory standards.
• Positioning for early adoption of digital identity solutions that enhance security and customer experience.
• Building partnerships with key identity providers and industry stakeholders to ensure a smooth transition.
• Leveraging new business models emerging from standardized digital identity architecture and trust model.

What Is the Future Outlook?

The European Blockchain Services Infrastructure (EBSI) framework is set to bolster enterprise-grade blockchain adoption solutions. In particular, platforms like Besu are expected to gain significant traction due to EBSI’s support for a transparent, immutable ledger. Along with the platform itself, advanced digital identity ledgers such as Hyperledger Indy Besu will benefit from increased traction and interest from both businesses and open-source communities. Such positive regulatory momentum not only enhances trust but also drives the scalability and interoperability required for future-proof digital identity systems.

By proactively aligning with EUDI and eIDAS 2.0, businesses can not only ensure compliance but also capitalize on emerging opportunities in the evolving EU digital identity landscape.

Where Can Organizations Find the Right Expertise?

Successfully navigating the complexities of EUDI and eIDAS 2.0 requires both business strategy and technical expertise. Organizations should seek advisors with deep knowledge of identity standards, regulatory compliance, and secure authentication technologies. Working with experienced consultants can help businesses:

• Understand the impact of EUDI on their industry and customer interactions.
• Develop a customized roadmap for compliance and integration.
• Implement best practices for decentralized identity, focusing on security and interoperability.

Partnering with DSR Corporation

DSR Corporation offers expert consulting services to help organizations prepare for EUDI and eIDAS 2.0, both strategically and technically. Whether your company is just starting its digital identity journey or already leveraging advanced authentication systems, DSR can meet you where you're at. With a ready-made digital identity wallet and deep expertise in verifiable credentials, DSR enables businesses to integrate compliant solutions, ensuring long-term success in the evolving EU digital landscape.

Next Steps

EUDI and eIDAS 2.0 will redefine digital identity management in the EU, presenting both challenges and opportunities for businesses. Delaying action could leave your business struggling to meet regulatory standards, risking penalties and operational disruptions — while competitors gain an early-mover advantage. Organizations that act now to ensure compliance, strengthen security, and optimize interoperability will gain a competitive edge. Partnering with experts like DSR Corporation can help businesses navigate this transformation with confidence, ensuring they are both strategically and technically prepared for the future of digital identity.