Decentralised Finance (DeFi) is hailed as multi-trillion business opportunity and treasure trove of innovation. It is poised to change the inner mechanisms of the financial system and complement existing profit models. Digital, tokenised assets, securities, and proofs-of-ownership are at the very core of it. If embedded with voting rights, under the umbrella decentralised autonomous organisations, tokens also enable efficient forms of peer-to-peer governance. Still, there is a long way to mass adoption. One prime issue is the concentration of decision-making and the lack of regulatory oversight. Digital identities can here play a pivotal role in addressing both – regulators’ demands for transparency and users’ demands for privacy.