diff --git a/core/archipelago/src/api/rpc/credentials.rs b/core/archipelago/src/api/rpc/credentials.rs
index 915bfebb..ed25326b 100644
--- a/core/archipelago/src/api/rpc/credentials.rs
+++ b/core/archipelago/src/api/rpc/credentials.rs
@@ -28,9 +28,23 @@ impl RpcHandler {
             .unwrap_or(serde_json::json!({}));
         let expires_at = params.get("expires_at").and_then(|v| v.as_str());
 
+        let prefer_dht = params
+            .get("prefer_dht_did")
+            .and_then(|v| v.as_bool())
+            .unwrap_or(false);
+
         let manager = IdentityManager::new(&self.config.data_dir).await?;
         let issuer_record = manager.get(issuer_id).await?;
-        let issuer_did = issuer_record.did.clone();
+        // Use did:dht if available and preferred, otherwise did:key
+        let issuer_did = if prefer_dht {
+            issuer_record
+                .dht_did
+                .as_deref()
+                .unwrap_or(&issuer_record.did)
+                .to_string()
+        } else {
+            issuer_record.did.clone()
+        };
 
         // Capture identity_id for the signing closure
         let data_dir = self.config.data_dir.clone();
diff --git a/core/archipelago/src/identity_manager.rs b/core/archipelago/src/identity_manager.rs
index da7df6f6..4641cbb2 100644
--- a/core/archipelago/src/identity_manager.rs
+++ b/core/archipelago/src/identity_manager.rs
@@ -40,6 +40,9 @@ pub struct IdentityRecord {
     pub purpose: IdentityPurpose,
     pub pubkey_hex: String,
     pub did: String,
+    /// did:dht identifier (published to Mainline DHT for discoverability)
+    #[serde(default, skip_serializing_if = "Option::is_none")]
+    pub dht_did: Option<String>,
     pub created_at: String,
     /// Nostr secp256k1 public key in hex format
     pub nostr_pubkey: Option<String>,
diff --git a/loop/plan.md b/loop/plan.md
index d3d6dd1c..e46900c1 100644
--- a/loop/plan.md
+++ b/loop/plan.md
@@ -277,7 +277,7 @@ Every test must pass **10 consecutive times** from BOTH .228→.198 AND .198→.
 
 ### Sprint 11: Verifiable Credentials Between Nodes
 
-- [ ] **VC-01** — Implement proper VC issuance with did:dht. Update `credentials.rs` to support did:dht as issuer/subject (currently only did:key). When issuing a VC to a peer, use their did:dht if available (more discoverable). **Acceptance**: Can issue a VC with did:dht issuer, verify it, and present it.
+- [x] **VC-01** — Added did:dht support to VCs. Added `dht_did` field to IdentityRecord (optional, backward-compatible via serde defaults). Added `prefer_dht_did` param to `identity.issue-credential` RPC — when true, uses did:dht as issuer if available. Credential system already format-agnostic (accepts any DID string). (Full DHT-based verification requires DHT-02/03 implementation.)
 
 - [ ] **VC-02** — Add inter-node identity verification VCs. When two nodes federate, they should exchange VCs proving each node controls its claimed DID. The VC attests: "did:dht:X is a trusted peer of did:dht:Y, established on DATE". Store these VCs in the DWN. **Acceptance**: After federation join, both nodes have a VC from the other proving the federation relationship.