Toppan Inc. says a recent proof-of-concept shows how private keys for corporate identity verification can be managed in a decentralized system for stronger transaction security and resiliency. Toppan integrated its vLEI-Gateway to verify the identity and authority of organizations and their representatives when authorizing transactions or adding destinations to digital asset transfer whitelists.
The PoC ran from August to October in collaboration with BitGo Holdings, which is described in the announcement as a digital asset infrastructure provider.
The partners deployed a decentralized key management scheme combining Toppan’s private key management infrastructure and operational expertise gained through its ID card issuance business with multi-signature key distribution technology and operational management expertise for digital assets supplied by BitGo.
The Global Legal Entity Identifier Foundation (GLEIF) qualified Toppan Edge as a vLEI issuer.
Toppan is part of a joint venture that recently won a subsidy from Osaka Prefecture in Japan to conduct a PoC of a KYB system based on blockchain and vLEIs. The company also partnered on a PoC for biometric verification of decentralized IDs with Partisia last year.
The scheme developed by Toppan and BitGo is intended to eliminate single points of failure from corporate identity verifications and prevent unauthorized approvals by other parties, the partners say. The jointly developed and verified decentralized key management scheme divides signature authority among three parties. The client provides the main signature, BitGo a countersignature and Toppan a backup key. The scheme requires two of the three keys to authorize transactions, preventing unilateral approval while allowing operations to continue if one key becomes unavailable.
The implementation involved building the digital wallet and certification infrastructure and the storage and authentication environment, testing standard transactions and failure scenarios. The companies say the tests confirmed that corporate verification and asset transfers worked as intended, including when one of the three keys was unavailable.
Toppan and BitGo plan to further advance the scheme based on the PoC results to offer a digital asset management and operation platform to banks, municipalities and corporations facing challenges managing digital assets, with a possible launch in 2028.
Article Topics
digital company ID | KYB | Legal Entity Identifier (LEI) | Toppan | Toppan Edge