Amsterdam-based Duna raises €10.7 million in Seed funding led by Index Ventures to expand its decentralized identity network, aligning with new EU regulatory requirements for cross-border digital verification.
Dutch digital identity startup Duna announced €10.7 million in Seed funding on 06 May 2025, led by Index Ventures with participation from executives at Stripe and Adyen. The investment comes as EU lawmakers ratified updated eIDAS 2.0 regulations on 10 June 2025, mandating interoperable digital identity solutions across member states by 2026.
Regulatory Tailwinds Drive Adoption
Duna’s funding follows the European Parliament’s approval of expanded Know-Your-Customer (KYC) requirements under eIDAS 2.0, which specifically require cross-border interoperability for digital identity verification. According to a 12 June McKinsey report cited in Duna’s press release, the global digital identity market is growing at 22% annually due to increasing AI-powered fraud attempts.
Strategic Partnerships Emerge
Financial software provider Plaid confirmed on 12 June that Duna’s technology underpins its new real-time verification tool for European clients. German fintech Moss meanwhile credited Duna’s infrastructure for enabling its 14 June expansion into France’s regulated banking market.
Competitive Landscape Intensifies
The sector saw rival IDnow secure €30 million on 11 June for AI-driven identity checks, while Duna’s CTO revealed ongoing discussions with a Nordic central bank about potential CBDC integration. Index Ventures partner Jan Hammer noted in a statement: ‘Duna sits at the convergence of three critical trends – regulatory compliance, decentralized architecture, and payment infrastructure modernization.’
Historical Context: Digital Identity Evolution
The EU first introduced electronic identification standards through eIDAS 1.0 in 2014, achieving limited adoption until pandemic-era digitalization demands. Previous attempts at pan-European digital wallets like the 2021 German-led ID Union consortium faced interoperability challenges that Duna’s blockchain-based approach aims to resolve.
Broader Market Implications
Duna’s Stripe and Adyen connections suggest potential payment integration parallels to Microsoft’s 2022 Entra ID rollout, which became embedded in 78% of enterprise SaaS platforms within 18 months. As central banks explore digital currencies, the startup’s early CBDC pilot talks mirror Mastercard’s 2023 experiments with programmable euro credentials.
