Decentralized Identity on the XRPL: Unpacking the New XLS-40 Proposal

3 min readNov 20, 2023


The blockchain community is abuzz with the prospect of the proposed XLS-40 feature, which could usher in a new era for digital identity on the XRP Ledger. Ripple Labs’ development arm, RippleX, has unveiled a groundbreaking initiative to integrate native support for Decentralized Identifiers (DIDs) based on World Wide Web Consortium (W3C) standards. This move aims to provide a standardized and interoperable solution for verifiable, self-sovereign digital identities on the XRP Ledger.

“The XLS-40’s emphasis on the W3C DID v1.0 standard ensures a secure and compliant framework that could potentially be used for cross-platform identity management via Sologenic’s institutional and decentralized arms, and our cross-chain initiatives.” — Alberto Robles Sologenic Tech Manager

What are DID’s?
Decentralized Identifiers (DIDs) offer a solution to the challenges associated with centralized identifiers such as emails and usernames. Unlike traditional identifiers, DIDs provide a globally unique string of letters and numbers, functioning as an independent and blockchain-based identifying address. This ensures ownership and control of data, reducing the risk of data breaches. DIDs also empower users to digitally sign and issue Verifiable Credentials, such as educational certificates, facilitating instant and secure verification.

Multiple independent DID controllers that can each act independently.

Key Feature of XLS-40

XLS-40 introduces a new DID method, outlining the format for XRP Ledger DIDs and defining the processes for their generation and management. This specification aligns with the W3C DID v1.0 standard, a data model and representation format for cryptographically-verifiable digital credentials which emphasizes persistence, global resolvability, cryptographic verifiability, and decentralization.

Case Study 1: Seamless Cross-Platform Identity Management

XLS-40 provides a standardized method for creating and managing DIDs on the XRP Ledger. Consider a scenario where an individual uses the same DID across various platforms and services. With XLS-40, users can seamlessly manage and control their digital identity, ensuring a consistent and secure experience across diverse applications.

Case Study 2: Enhanced Security and Trust in Financial Transactions

In the realm of financial transactions, where security and trust are paramount, XLS-40 offers a great solution. Imagine a user who needs to conduct cross-border transactions or engage in financial services. With their XRPL DID, they can establish a verifiable and secure identity, enhancing trust and reducing the risk of fraud in financial interactions.

Case Study 3: User-Controlled Data Sharing

Digital identity often involves sharing specific information with third parties. XLS-40 empowers users to selectively share their DID-associated data, ensuring privacy and user control. In scenarios like accessing online services or verifying personal details, individuals can share only the necessary information, maintaining a higher degree of control over their digital identity.

As XLS-40 prepares to integrate native support for W3C DIDs on the XRP Ledger, the blockchain community anticipates a transformative impact on digital identity management. This feature not only aligns with global standards but also positions the XRP Ledger as a pioneer in providing secure, user-centric digital identity solutions.

Sologenic stands at the forefront of empowering institutional investors within the blockchain ecosystem. Sologenic leverages XRPL for single sign-ons and thus replaces traditional solutions like Firebase, Google, and other traditional processes. As new features like DIDs and XLS-40 make their way to the market, Sologenic’s comprehensive solutions strengthen the rapidly growing developer environment and partner ecosystem. Learn more at

About Sologenic

Sologenic’s regulated arm is deploying a platform with a hybrid model for the on-demand tokenization of assets. This platform facilitates trading between crypto and off-chain traditional assets such as stocks & ETFs. This institutional-grade offering is designed for RIA’s, brokerage houses, family offices, banks and other financial institutions looking to tokenize real-world assets for their clients. Learn more at




Sologenic is disrupting the asset trading industry: Tokenized Securities, Crypto Assets & NFTs. and