In the past, the crypto wallet was nothing more than a key to store coins. Now the wallet is evolving into a full-fledged identity container, with reusable credentials such as KYC checks, diplomas and licenses that can guide users across apps and chains.
This shift comes at the right time. That of the European Union Digital identity wallet The rollout is scheduled for 2026, requiring EU countries to issue interoperable digital IDs. At the same time, projects like Moca Chain, launched under the Animoca Brands umbrella, are building blockchains purpose-built for decentralized identities, delivering on the promise of user ownership, interoperability, and privacy through zero-knowledge proofs. The convergence of policy momentum and technological innovation makes digital identity one of the most consequential frontiers of the Web3 space.
From storage to passports
Arthur Breitman, founder of Tezos, believes wallets are about to undergo a fundamental transition. “A wallet is no longer just a safe for belongings,” he says. “It could be a passport that proves that you are an adult, or that you have a certain certification, without ever revealing any personal information.”
This idea reflects the growing shift toward verifiable credentials, where identity information is packaged as cryptographic proofs rather than raw data. Breitman adds that portability is key: “Once identity becomes portable, the friction of re-verification disappears. That’s a game-changer not just for compliance, but for everyday convenience.”
Europe and Hong Kong’s big push
Europe sets the tone for regulatory frameworks. The EU Digital Identity initiative and the MiCA regulation are pushing governments and corporations to adopt standardized, interoperable approaches to both money and identity. And it’s not just Europe. In Hong Kong, the HKMA recently launched a cross-border campaign data validation platform to streamline identity verification in cross-border finance, highlighting how jurisdictions around the world are racing to make digital identity portable and trusted.” This coordination could open doors for Web3 the crypto wallet And decentralized identity solutions that can act as an official ID, with the flexibility to function in both decentralized apps and traditional settings.
Moca Chain’s model emphasizes privacy by design, where credentials are verified using zero-knowledge proofs so that no raw personal information is shared. This approach is intended to avoid the pitfalls of centralized ID systems that expose user data to breaches or surveillance. By ensuring identity remains self-sovereign, users can decide when, how, and with whom to share evidence.
Other innovative approaches include prominent players such as Terminal 3 and OpenDID. Terminal 3 decentralized private data network allows companies and governments to issue cryptographic data that can verify identity claims across platforms and across borders, without ever revealing personal data. These “smart credentials” are freely curable, quantum-resistant, fully customizable, and can be issued from any private data source. OpenDID is a infrastructure that connects all major cryptography-based digital identity and decentralized identification (DID) systems, routing encrypted messages between identity and enterprise systems, in a design similar to SWIFT as a messaging backbone, but for identities.
Frictionless onboarding
To make identity useful at scale, it must integrate seamlessly into everyday experiences. That’s where Vyvo comes into the picture. Vyvo is a digital health platform that links wearables to blockchain to turn biometrics and lifestyle data into verifiable identity credentials. “Imagine being able to prove your health status or eligibility status without turning over your entire medical history,” explains Hakan Kozakli, CTO of Vyvo. By linking health data to decentralized identity, Vyvo illustrates how credentials can extend far beyond finance to wellness, insurance and employment.
When identity becomes income
The next step in the evolution of identity is monetization. Instead of intermediaries capturing value when identity is verified, users can receive direct economic rewards. This “data financialization” flips the script and treats identity as an asset that can generate revenue. Breitman sees this as inevitable: “The ability to monetize authentication events creates incentives for individuals to manage their data more carefully. It also creates entirely new marketplaces around identity.”
Moca’s roadmap explicitly embraces this vision, positioning reusable identity credentials not only as tools for compliance, but also as tools to be monetized every time they are verified. That could turn routine checks into economic events, rewarding individuals for the value of their digital presence.
What comes next
The building blocks are falling into place: regulatory clarity in Europe, purpose-built blockchains like Moca Chain, and applications like Vyvo that show how identity can be applied across industries. The challenge ahead is to make these systems interoperable, user-friendly and economically attractive.
If wallets truly become passports, and if identity verifications can become revenue-generating events, then digital identity could shift from a bureaucratic necessity to a financial opportunity. For users, this means more control, more privacy, and perhaps even more benefit from something as simple as proving who they are.