Telefónica joins Privado ID to develop EU-compliant digital identity solutions

Spanish telecom giant Telefónica has joined Privado ID as a systems integrator to develop new digital identity solutions using decentralized technology.

According to a press release shared with Crypto.news, Telefónica Tech, Telefónica’s digital business unit, will work with Privado ID to create secure and privacy-focused services that comply with the latest European regulations on digital identity.

Privado ID, previously known as Polygon ID, was spun off from Polygon Labs in June 2024. The project specializes in privacy-focused digital identity solutions that enable on-chain verification while preserving user privacy.

The partnership comes as the EU’s new digital identity rules, eIDAS 2.0, require all EU Member States to provide digital ID wallets to their citizens. As the 2026 deadline for Digital ID Wallets approaches, Telefónica Tech and Privado ID are coming together to create solutions that meet these standards.

Details of the partnership

As part of the collaboration, Privado ID will be integrated with Telefónica Tech’s TrustOS platform, a managed blockchain service that facilitates secure and transparent digital transactions by connecting businesses to various blockchain networks.

Telefónica Tech will use Privado ID’s digital identity platform to enhance its content certification service by offering the ability to issue certificates in a verifiable credential format, allowing users to automatically issue their accreditations, such as educational diplomas, academic qualifications and certificates of attendance, as secure and privacy-friendly verifiable credentials that can be stored in digital wallets.

Additionally, Telefónica Tech and Privado ID will develop digital identity proofs of concept, starting with an age verification system for secure access to adult content and gambling platforms, and will also explore additional applications such as digital national IDs, e-signature solutions and privacy-preserving loyalty.

Privado ID CEO and Co-Founder David Schwartz believes the collaboration will help “bring enterprise customers into the Privado ID ecosystem.”

Telefónica’s entry into blockchain

Telefónica’s involvement in blockchain extends beyond this alliance. The company has previously partnered with Chainlink to secure API connections on the Polygon network, enabling reliable data transfers between external systems and blockchain applications using decentralized oracle technology.

In January, the telecom giant expanded mobile service coverage in select regions by partnering with Nova Labs to deploy Helium Mobile Hotspots in Mexico. The Madrid-based firm also announced plans to create a metaverse following a deal with chipmaker Qualcomm in 2022.