The Global LEI System is one of a kind in its capacity to provide regulated and standardized global identities for legal entities around the world. The Global Legal Entity Foundation (GLEIF) that governs the LEI will now also become the gatekeeper of the new decentralized vLEI system, the vLEI Ecosystem Governance Framework 2022
On 29 June 2022, GLEIF posted a press release on its official website about the measures to be taken to solve all the digital identity problems. Talking about the uses and benefits of LEI and vLEI.
What is vLEI?
Using the vLEI will allow everyone to confirm ownership structures and authorized representations in many digital business activities (everyone with an LEI code). Some examples of known use cases include approving business transactions and contracts, onboarding customers, transacting within import/export and supply chain business networks, and submitting regulatory filings and reports.
GLEIF has mentioned the vLEI trust chain as follows:
- GLEIF is the root of trust.
- GLEIF will establish a trusted network of Qualified vLEI Issuers (QVIs).
- QVI-s are qualified to issue Entity and Role Credentials:
- to Legal Entities
- to Persons who represent Legal Entities either in official or functional roles. Source: GLEIF
By combining three concepts, i.e., the company’s name represented by LEI, the responsible person represented by the legal entity, and the role played by the person of the legal entity, vLEI can be issued and become a part of the company’s digital identity.
vLEI will add additional authenticity, credibility, and value to the legal entity.