Configure your tenant for Azure AD Verifiable Credentials (preview)

Azure Active Directory (Azure AD) Verifiable Credentials safeguards your organization with an identity solution that's seamless and decentralized. The service allows you to issue and verify credentials. For issuers, Azure AD provides a service that they can customize and use to issue their own verifiable credentials. For verifiers, the service provides a free REST API that makes it easy to request and accept verifiable credentials in your apps and services.

In this tutorial, you learn how to configure your Azure AD tenant so it can use this credentials service.

Specifically, you learn how to:

  • Set up a service principal
  • Create a key vault in Azure Key Vault
  • Register an application in Azure AD
  • Set up the Verifiable Credentials service

The following diagram illustrates the Azure AD Verifiable Credentials architecture and the component you configure.

Diagram that illustrates the Azure AD Verifiable Credentials architecture.


Set up a service principal

Create a service principal for the Request Service API. The service API is the Microsoft service that you use to issue or verify Azure AD Verifiable Credentials.

To create the service principal:

  1. Run the following PowerShell commands. These commands install and import the AzureAD module. For more information, see Install the Azure Az PowerShell module.

    if ((Get-Module -ListAvailable -Name "AzureAD") -eq $null) {  Install-Module "AzureAD" -Scope CurrentUser }  Import-Module AzureAD
  2. Run the following PowerShell command to connect to your Azure AD tenant. Replace <your-tenant-ID> with your Azure AD tenant ID.

    Connect-AzureAD -TenantId <your-tenant-ID>
  3. Run the following command in the same PowerShell session. The AppId bbb94529-53a3-4be5-a069-7eaf2712b826 refers to the Verifiable Credentials Microsoft service.

    New-AzureADServicePrincipal -AppId "bbb94529-53a3-4be5-a069-7eaf2712b826" -DisplayName "Verifiable Credential Request Service" 

Create a key vault

Azure Key Vault is a cloud service that enables the secure storage and access of secrets and keys. Your Verifiable Credentials service stores public and private keys in Azure Key Vault. These keys are used to sign and verify credentials.

If you don't have an instance of Azure Key Vault, follow these steps to create a key vault by using the Azure portal.


By default, the account that creates the key vault is the only one with access. The Verifiable Credentials service needs access to the key vault. You must configure the key vault with an access policy that allows the account used during configuration to create and delete keys. The account used during configuration also requires permission to sign to create the domain binding for Verifiable Credentials. If you use the same account while testing, modify the default policy to grant the account sign permission, in addition to the default permissions granted to vault creators.

Set access policies for the key vault

After you create your key vault, Verifiable Credentials generates a set of keys used to provide message security. These keys are stored in Key Vault. You use a key set for signing, updating, and recovering verifiable credentials.

A Key Vault access policy defines whether a specified security principal can perform operations on Key Vault secrets and keys. Set access policies in your key vault for both the administrator account of the Azure AD Verifiable Credentials service, and for the Request Service API principal that you created.

  1. In the Azure portal, go to the key vault you use for this tutorial.

  2. Under Settings, select Access policies.

  3. In Add access policies, under USER, select the account you use to follow this tutorial.

  4. For Key permissions, verify that the following permissions are selected: Create, Delete, and Sign. By default, Create and Delete are already enabled. Sign should be the only key permission you need to update.

    Screenshot that shows how to configure the admin access policy.

  5. To save the changes, select Save.

  6. Select + Add Access Policy to add permission to the service principal of the Verifiable Credential Request Service.

  7. In Add access policy:

    1. For Key permissions, select Get and Sign.

    2. For Secret permissions, select Get.

    3. For Select principal, select Verifiable Credential Request Service.

    4. Select Add.

      Screenshot that demonstrates how to add an access policy for the Verifiable Credential Request Service.

  8. Select Save to save the new policy you created.

Register an application in Azure AD

Azure AD Verifiable Credentials Request Service needs to be able to get access tokens to issue and verify. To get access tokens, register a web application and grant API permission for the API Verifiable Credential Request Service that you set up in the previous step.

  1. Sign in to the Azure portal with your administrative account.

  2. If you have access to multiple tenants, select the Directory + subscription icon. Then, search for and select your Azure Active Directory.

  3. Under Manage, select App registrations > New registration.

    Screenshot that shows how to select a new application registration.

  4. Enter a display name for your application. For example: verifiable-credentials-app.

  5. For Supported account types, select Accounts in this organizational directory only (Default Directory only - Single tenant).

  6. Select Register to create the application.

    Screenshot that shows how to register the verifiable credentials app.

Grant permissions to get access tokens

In this step, you grant permissions to the Verifiable Credential Request Service principal created in step 1.

To add the required permissions, follow these steps:

  1. Stay in the verifiable-credentials-app application details page. Select API permissions > Add a permission.

    Screenshot that shows how to add permissions to the verifiable credentials app.

  2. Select APIs my organization uses.

  3. Search for the service principal that you created earlier, Verifiable Credential Request Service, and select it.

    Screenshot that shows how to select the service principal.

  4. Choose Application Permission, and expand VerifiableCredential.Create.All.

    Screenshot that shows how to select the required permissions.

  5. Select Add permissions.

  6. Select Grant admin consent for <your tenant name>.

Set up Verifiable Credentials

To set up Azure AD Verifiable Credentials, follow these steps:

  1. In the Azure portal, search for verifiable credentials. Then, select Verifiable Credentials (Preview).

  2. From the left menu, select Getting started.

  3. Set up your organization by providing the following information:

    1. Organization name: Enter a name to reference your business within Verifiable Credentials. Your customers don't see this name.

    2. Domain: Enter a domain that's added to a service endpoint in your decentralized identity (DID) document. The domain is what binds your DID to something tangible that the user might know about your business. Microsoft Authenticator and other digital wallets use this information to validate that your DID is linked to your domain. If the wallet can verify the DID, it displays a verified symbol. If the wallet can't verify the DID, it informs the user that the credential was issued by an organization it couldn't validate.


      The domain can't be a redirect. Otherwise, the DID and domain can't be linked. Make sure to use HTTPS for the domain. For example:

    3. Key vault: Enter the name of the key vault that you created earlier.

  4. Select Save and create credential.

    Screenshots that shows how to set up Verifiable Credentials.

Next steps