Global Digital Identity Roundup: EUDI Wallet Progress and Market Consolidation Amid Regional Setbacks

The digital identity sector is currently navigating a complex landscape of rapid technological deployment and regulatory hurdles across global markets. Significant progress is being made in Europe with the launch of Denmark’s AltID and LSEG’s Identity Gateway, both aimed at streamlining interoperability ahead of the EU Digital Identity Wallet deadline. However, the suspension of the UK’s MyIdentity project underscores the ongoing difficulties in establishing stable, government-backed frameworks for voluntary adoption in specific industries like real estate.

European digital identity infrastructure is undergoing significant consolidation and expansion as LSEG Risk Intelligence launches its Identity Gateway on Microsoft Azure. This platform provides a single API for ten European markets, including Spain and Italy, and is expected to reduce integration times by up to 90 percent for organizations navigating the EUDI Wallet ecosystem. Meanwhile, Belgium’s itsme app has entered the Netherlands to replace the iDIN banking identity service by 2027, and Google Wallet is preparing to support government-issued IDs in the EU this summer, with Germany’s Sparkasse Bank enabling age verification through the platform.

The rise of AI-driven threats is forcing a shift toward continuous identity monitoring and specialized management for non-human entities. In South Korea, where deepfake fraud increased by 137 percent in 2025, Sumsub has partnered with iMind to integrate AI-driven verification and deepfake detection into local payment infrastructures. Simultaneously, security vendors such as SailPoint, Radiant Logic, and NTT DOCOMO GLOBAL are launching initiatives to inventory and score the risks associated with autonomous AI agents. To streamline deployment of these defenses, 1Kosmos has made its passwordless authentication and identity verification platform available via the AWS Marketplace to support Zero Trust strategies.

Regulatory developments and sector-specific implementations show a mix of progress and setbacks for digital identity adoption. Denmark has officially launched AltID, a national digital identity wallet developed by Nine and Signicat that uses privacy-preserving zero-knowledge proofs to verify age and identity. In the UK, research from Estonia’s e-Residency programme shows that 88 percent of accountants are being approached for EU expansion advice, with nearly half recommending digital-only identity routes despite 41 percent citing security concerns. However, the UK’s MyIdentity initiative for the property sector has been suspended due to shifting government policies, while Bhutan has successfully launched a digital consent system for land transactions to replace fraud-prone paper processes.