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Decentralized Identity

Microsoft Entra Verified ID

Founded 2022Redmond, Washington, USAPublic (Microsoft)Score 4.2/5Evaluated 2026-06-19Website ↗

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, making it the most enterprise-ready on-ramp to the technology for the large base of Microsoft-centric organizations.

What it is good at

Integration and backing are the strengths. Verified ID plugs into Entra ID, Conditional Access, and Microsoft Authenticator, ships with enterprise support and compliance, and uses open standards (DIDs, VCs), which lowers adoption friction sharply. Governance and lifecycle ride on existing Entra tooling, so an organization already invested in Microsoft identity gets verifiable credentials without standing up new infrastructure or a separate support relationship.

Where it falls short

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 experience is heaviest within Microsoft Authenticator. Like the whole category, real cross-organization credential exchange is still early, so many deployments stay within a single tenant or a closed partner set rather than spanning an open ecosystem.

Pricing

Included with or licensed alongside Entra ID plans, with transaction-based costs for issuance and verification. Microsoft licensing here has shifted over time, so confirm current terms and model the transaction cost with the TCO calculator.

Best for, and who should look elsewhere

Choose Verified ID if you already run Entra ID and want verifiable credentials with enterprise support for workforce onboarding, credential verification, and access scenarios. Look elsewhere if you want a vendor-neutral, self-hosted, or non-Microsoft stack, or a wide cross-ecosystem wallet network. Compare with Spruce ID and walt.id, or browse the decentralized identity category.

Bottom line

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

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By SWI Community Team · Last evaluated 2026-06-19

Independent, community-driven analysis. No vendor sponsorship. Compiled from public research and community input and verified on a best-effort basis, so details may be incomplete or out of date. Scores are opinions, not advice. Trademarks belong to their owners; mention does not imply affiliation or endorsement. See the full disclaimer, or send corrections to community@startwithidentity.com.