Decentralized Identity

Microsoft Entra Verified ID

Founded 2022Redmond, Washington, USAPublic (Microsoft)Score 4.2/5Evaluated 2026-02-10Website ↗

Capability scores

Methodology →
Authentication
4.0
SSO & Federation
4.5
Authorization
3.5
Lifecycle & Provisioning
4.0
MFA & Passwordless
4.0
Governance & Audit
4.0
Developer Experience
3.5
Deployment Flexibility
2.5
Pricing Transparency
3.5
Support & Ecosystem
4.5

Scored 0–5 against a published rubric. Independent analysis, no vendor sponsorship.

Overview

Microsoft Entra Verified ID brings decentralized identity into the Entra (formerly Azure AD) platform, letting organizations issue and verify W3C Verifiable Credentials based on DIDs. The goal is portable, privacy-respecting proofs (employment, education, access eligibility) that integrate with existing Microsoft identity workflows.

Capability deep-dive

The strength is integration and backing. Verified ID plugs into Entra ID, Conditional Access, and Authenticator, ships with enterprise support and compliance, and uses open standards (DIDs, VCs), which lowers adoption friction for the large base of Microsoft-centric organizations. Governance and lifecycle ride on existing Entra tooling. The trade-offs cut against the decentralized ethos: it is SaaS-only and most natural inside the Microsoft estate, so deployment flexibility and true vendor neutrality are limited, and the practical wallet and verifier network is heaviest within Microsoft Authenticator. Like the whole category, real-world cross-organization credential exchange is still early, so many deployments stay within a single tenant or partner set.

Pricing

Included with or licensed alongside Entra ID plans; issuance and verification have associated transaction-based costs. Check current Microsoft licensing, as it has shifted over time.

Bottom line

The safest enterprise on-ramp to verifiable credentials if you already run Entra ID, with strong support and standards. Less suited to teams wanting a neutral, self-hosted, or non-Microsoft approach.

Independent editorial review. Author: Deepak Gupta. Last evaluated 2026-02-10.