One of the most common misconceptions we hear in the identity space is that Passkeys and Digital Identity are competing approaches. They’re not.
The truth is much simpler:
Passkeys and digital identity solve different problems.
What Passkeys Actually Solve
Passkeys are a major leap forward in authentication. They replace passwords with a combination of biometrics and public-key cryptography, binding a user to a device.
This makes them exceptionally strong for:
- Secure, seamless login
- Phishing-resistant access
- Reducing password-related risk
Passkeys tell you two things, very reliably:
- A trusted device is being used
- The owner of the device is using it
But notice what’s missing:
👉 Passkeys don’t identify who that person actually is.
They only confirm that the same device (and therefore the same user) is coming back.
For many applications, that’s perfect. For others, it’s nowhere near enough.
Where Passkeys Fall Short: Identity Verification
If you need to know who the user is, passkeys won’t give you that answer.
That’s where digital identity comes in.
Digital identity verifies who the user is and ties that proof to a cryptographically signed, reusable credential that can be used anywhere it’s trusted.
This unlocks capabilities that passkeys were never designed to handle:
- High-assurance identity verification
- Cross-organization authentication
- Attribute-based proof such as age, address, eligibility, or qualifications
- Delegated identity for AI agents acting on your behalf
Passkeys give you authentication. Digital identity gives you identity verification.
Both are vital, but they’re not the same.
The Most Robust Architecture Uses Both
The reality is that modern digital ecosystems require a layered approach:
- Digital identity for verified, portable proof of who the user is
- Passkeys for authenticating that verified user when they return
This is the model emerging across financial services, AI-driven systems, government identity, and soon consumer platforms as well.
It’s Not Passkeys or Digital Identity.
There’s no conflict between passkeys and digital identity because they operate on different layers of trust.
When organizations combine them properly, they get high assurance and high convenience: verified identity when needed, and frictionless authentication everywhere else.
That’s where the industry is headed.
