A draft identity standard cleared its second working-group review this week, moving one step closer to a stable version.
The goal is a portable credential presentation layer that different wallets and issuers can adopt without ceding control to any one party. Two of the largest self-custody wallets have already committed to reference implementations; a third is watching the review process before making a call.
The pragmatic prize here is not sovereign identity in the abstract — it's a cleaner sign-in flow for the first-time consumer user, whose current experience remains the single biggest onboarding failure in the industry.
The goal is a portable credential presentation layer that different wallets and issuers can adopt without ceding control to any one party. Two of the largest self-custody wallets have already committed to reference implementations; a third is watching the review process before making a call.
This story reshapes how allocators, developers, and regulators expect the next 30–90 days to unfold across major crypto assets.
Clearer rules and healthier flows tend to expand institutional participation and improve liquidity.
Enforcement risk and unresolved custody questions could dampen participation until follow-up guidance lands.
Watch for a follow-up statement from the counterparties named in the report and any market-maker rebalancing before month end.
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Covers L1/L2 architecture, DeFi mechanism design, and MEV.