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How does LPID and vLEI work together? Or are they competing?

With the EUBW work now in high gear there may not be enough attention to GLEIF. Some may think that they are competing.
 
ChatGPT said:

Excellent and timely question — and one that many in the eIDAS / Trust over IP / GLEIF / MyData / Findynet circles are quietly wrestling with right now.

Let’s strip the jargon down and look at it as infrastructure pieces.


🧩 What they each are

LPID = Legal Entity Identifier with Power-to-Act & Identity Proofing — in the EUDI / EUBW context.
It’s a verifiable credential representing a Legal Person’s ID, typically issued under eIDAS2 by a qualified or trusted issuer (like a national business register or EUBW-connected authority).
It’s meant to live inside an organisation wallet (EUBW) and be usable by its representatives when they sign, delegate, or authorise on behalf of the company.

In short: LPID = “Company credential inside the EU Trust Framework.”


vLEI = verifiable Legal Entity Identifier — developed by GLEIF, built on the LEI system from the financial sector (originally under FSB/Basel mandate post-2008).
vLEI is a set of three VCs anchored in a global, ISO-standard governance framework:

  1. Legal Entity vLEI (the organisation itself)

  2. Legal Entity Official Organisation Role Credential (vLEI EOR)

  3. Legal Entity Authorised Representative Credential (vLEI EAR)

In short: vLEI = “Globally governed verifiable credentials for legal entities and their reps.”


⚙️ How they work together (or could)

They should not compete.
They’re different layers of the same emerging trust stack.

Layer EU Focus Global Focus Governance Role in Wallet World
LPID EIDAS2 / EUBW EU Legal Interoperability / Trust Frameworks Core company credential in EUBW
vLEI usable in EU too ISO / FSB global GLEIF & LOUs (Local Operating Units) Global cross-border VC for legal entities + roles

The ideal setup:

  • The LPID issuer (e.g. a national business register) could issue a LPID that includes or references the vLEI identifier (LEI code).

  • The vLEI then serves as a globally resolvable identifier and credential for recognition outside the EU’s eIDAS sphere.

  • The EUBW (organisational wallet) can carry both, aligning EU legal validity with global interoperability.


🧠 Think of it like this

  • vLEI = global trust anchor (ISO standard, machine-readable, cross-jurisdictional)

  • LPID = EU legal trust anchor (eIDAS2-compliant, linked to national registers, carries liability and legal effect)

If integrated smartly:

LPID = “who the company is under EU law”
vLEI = “how the world recognises it in cross-border machine-to-machine interactions.”


🪜 What’s likely to happen

  • EUBWs will support both schemas (LPID + vLEI).

  • GLEIF and EU pilots are already discussing convergence — e.g., using vLEI’s KERI/ACDC models as technical templates for LIPID and PoA credentials.

  • In the long run, expect harmonisation:
    vLEI providing the identifier framework,
    LPID providing EU legal semantics and qualified status.


🧭 TL;DR

They’re not competitors — they’re complementary building blocks.

  • vLEI gives you global machine-readable identity.

  • LPID gives you EU-legally valid identity and representation.

  • Together in an EUBW, they form the organisational side of the EU Trust Infrastructure — powering AI-agents, data-space access, and cross-border business automation.


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