--- title: "SD-JWT VC or W3C Verifiable Credentials? Compared" url: https://knowyouragent.ch/en/knowledge/comparison/sd-jwt-vc-or-w3c-vc lang: en updated: 2026-10-17 license: © Innopulse Consulting GmbH --- # SD-JWT VC or W3C Verifiable Credentials? Compared There are two large families of digital credentials. SD-JWT VC builds on JSON Web Tokens, W3C Verifiable Credentials on a data model in JSON-LD. For agent mandates in the DACH region, much speaks for SD-JWT VC. [Leutrim Miftaraj](https://knowyouragent.ch/en/about/leutrim-miftaraj), Founder, Innopulse Consulting GmbH Published 17 October 2026 ## Key points - [SD-JWT VC](https://knowyouragent.ch/en/knowledge/glossary/sd-jwt-vc) builds on JWT and brings selective disclosure and [key binding](https://knowyouragent.ch/en/knowledge/glossary/key-binding). - W3C Verifiable Credentials 2.0 is a data model in JSON-LD with various securing mechanisms. - In the DACH region, much speaks for SD-JWT VC, because the Swiss e-ID and the EUDI wallet rely on it. ## What this is about [SD-JWT VC](https://knowyouragent.ch/en/knowledge/glossary/sd-jwt-vc) is an IETF format: a signed JWT whose claims are contained as hash values and can be disclosed one by one. [W3C Verifiable Credentials 2.0](https://knowyouragent.ch/en/knowledge/glossary/w3c-verifiable-credentials) is a W3C data model, a Recommendation since May 2025, that describes issuer, holder and claims in JSON-LD and allows various securing mechanisms. Both pursue the same goal: credentials that an issuer signs, a holder keeps and a [verifying party](https://knowyouragent.ch/en/knowledge/glossary/verifying-party) checks independently. They differ in encoding, tooling and adoption. ## The comparison | Feature | SD-JWT VC | W3C VC 2.0 | |---|---|---| | Origin | IETF | W3C | | Encoding | JWT, compact | JSON-LD, extensible through contexts | | Selective disclosure | Built in through disclosures | Depending on the securing mechanism, for example special cryptosuites | | Securing | JWS with common algorithms | Data Integrity, JOSE or COSE | | Binding to the holder | Key binding JWT | Depending on the profile | | Government wallets | Swiss e-ID, EUDI wallet | In individual ecosystems | | Verification in KYA | Full | Not supported, reported | ## When to use what - **SD-JWT VC:** credentials around the Swiss e-ID or the EUDI wallet, [agent mandates](https://knowyouragent.ch/en/knowledge/glossary/agent-mandate) with selective disclosure, environments with existing JWT infrastructure. - **W3C VC:** ecosystems that already build on it, for example in education, or applications that need the extensibility of JSON-LD. - **Both:** issuers serving different verifying parties can issue the same content in both formats. ## What this means for agent mandates Three properties count for mandates: [selective disclosure](https://knowyouragent.ch/en/knowledge/glossary/selective-disclosure), so agents show only the necessary details; [key binding](https://knowyouragent.ch/en/knowledge/glossary/key-binding), so only the authorized agent can present a mandate; and adoption among verifying parties. SD-JWT VC brings the first two built in and is established in the government wallets of Switzerland and the EU. The KYA verification profile therefore describes mandates as SD-JWT VC. ## The role of KYA KYA verifies SD-JWT VC in full, including disclosures, key binding, revocation and delegation. W3C VC with Data Integrity proofs are reported by the engine as an unsupported format instead of being silently assessed as valid or invalid. The [SD-JWT decoder](https://knowyouragent.ch/en/tools/sd-jwt-decoder) is suitable for reading an SD-JWT. ## Common misconceptions - **“The formats are competitors; one will disappear.”** Both have their own ecosystems; many issuers will serve both. - **“W3C VC cannot do selective disclosure.”** It can with suitable cryptosuites, but not in every profile and not with every verifying party. - **“SD-JWT VC is only for government IDs.”** The format suits any kind of credential, including mandates and agent passports. ## Decision guide in three questions - Which wallets and verifying parties must understand the credential? Around the Swiss e-ID and the EUDI wallet, it is SD-JWT VC. - Do you need selective disclosure without special cryptography? Then much speaks for SD-JWT VC. - Are you building on an existing JSON-LD ecosystem? Then W3C VC may fit better. ## Migrating between the formats Switching does not mean rebuilding the content: issuer, holder, claims and validity can be mapped. Effort arises in securing, key management and verifying parties. Whoever starts with SD-JWT VC today stays close to the government infrastructures in the DACH region. ## Frequently asked questions ### Is SD-JWT VC a standard? SD-JWT VC is being developed in the IETF; the underlying SD-JWT is well advanced. Government wallets already use the format. ### Why does the Swiss e-ID use SD-JWT VC? Because it is compact, brings selective disclosure built in and builds on widespread JWT tooling. The EU framework for the EUDI wallet also provides for SD-JWT VC. ### Can a W3C VC be selectively disclosed? Yes, with suitable securing mechanisms, such as special cryptosuites. This is not built into every profile, however, and must be supported by verifying parties. ### Which format should an agent mandate have? In the DACH region, much speaks for SD-JWT VC, because government identities build on it and key binding and selective disclosure are built in. The KYA verification profile uses SD-JWT VC. ### Can I issue a credential in both formats? Yes. The same content can be issued as an SD-JWT VC and as a W3C VC, for example when different verifying parties require different formats. ### What does this mean for existing KYA verifications? Nothing. KYA verifies SD-JWT VC in full and explicitly reports other formats as unsupported instead of assessing them wrongly. ### Which format does ISO mdoc use? ISO mdoc is a third format from the standard for mobile driver's licenses, encoded in CBOR. The EU framework provides for it alongside SD-JWT VC, mainly for credentials that are also presented offline. ## Sources - SD-JWT VC (IETF): [https://datatracker.ietf.org/doc/draft-ietf-oauth-sd-jwt-vc/](https://datatracker.ietf.org/doc/draft-ietf-oauth-sd-jwt-vc/) - W3C: Verifiable Credentials Data Model v2.0: [https://www.w3.org/TR/vc-data-model-2.0/](https://www.w3.org/TR/vc-data-model-2.0/) - EUDI Wallet: Architecture and Reference Framework: [https://eu-digital-identity-wallet.github.io/eudi-doc-architecture-and-reference-framework/](https://eu-digital-identity-wallet.github.io/eudi-doc-architecture-and-reference-framework/) --- Quelle: https://knowyouragent.ch/en/knowledge/comparison/sd-jwt-vc-or-w3c-vc · KYA – Know Your Agent