diff --git a/src/libs/util.ts b/src/libs/util.ts
index c65f2f8a..652ce5b7 100644
--- a/src/libs/util.ts
+++ b/src/libs/util.ts
@@ -655,7 +655,38 @@ export async function saveNewIdentity(
     ];
     await platformService.dbExec(sql, params);
 
-    await platformService.updateDefaultSettings({ activeDid: identity.did });
+    // Set the new identity as active using Active Identity façade
+    // Check if we need to avoid legacy settings table (Phase C)
+    const FLAGS = await import("@/config/featureFlags");
+    
+    if (!FLAGS.FLAGS.DROP_SETTINGS_ACTIVEDID) {
+      // Phase A/B: Update legacy settings table
+      await platformService.updateDefaultSettings({ activeDid: identity.did });
+    }
+    
+    // Always update/insert into new active_identity table
+    const DEFAULT_SCOPE = "default";
+    const existingRecord = await platformService.dbQuery(
+      "SELECT id FROM active_identity WHERE scope = ? LIMIT 1",
+      [DEFAULT_SCOPE],
+    );
+    
+    if (existingRecord?.values?.length) {
+      // Update existing record
+      await platformService.dbExec(
+        `UPDATE active_identity 
+         SET active_did = ?, updated_at = strftime('%Y-%m-%dT%H:%M:%fZ','now') 
+         WHERE scope = ?`,
+        [identity.did, DEFAULT_SCOPE],
+      );
+    } else {
+      // Insert new record
+      await platformService.dbExec(
+        `INSERT INTO active_identity (scope, active_did, updated_at) 
+         VALUES (?, ?, strftime('%Y-%m-%dT%H:%M:%fZ','now'))`,
+        [DEFAULT_SCOPE, identity.did],
+      );
+    }
 
     await platformService.insertDidSpecificSettings(identity.did);
   } catch (error) {
@@ -714,7 +745,40 @@ export const registerSaveAndActivatePasskey = async (
 ): Promise<Account> => {
   const account = await registerAndSavePasskey(keyName);
   const platformService = await getPlatformService();
-  await platformService.updateDefaultSettings({ activeDid: account.did });
+  
+  // Set the new account as active using Active Identity façade
+  // Check if we need to avoid legacy settings table (Phase C)
+  const FLAGS = await import("@/config/featureFlags");
+  
+  if (!FLAGS.FLAGS.DROP_SETTINGS_ACTIVEDID) {
+    // Phase A/B: Update legacy settings table
+    await platformService.updateDefaultSettings({ activeDid: account.did });
+  }
+  
+  // Always update/insert into new active_identity table
+  const DEFAULT_SCOPE = "default";
+  const existingRecord = await platformService.dbQuery(
+    "SELECT id FROM active_identity WHERE scope = ? LIMIT 1",
+    [DEFAULT_SCOPE],
+  );
+  
+  if (existingRecord?.values?.length) {
+    // Update existing record
+    await platformService.dbExec(
+      `UPDATE active_identity 
+       SET active_did = ?, updated_at = strftime('%Y-%m-%dT%H:%M:%fZ','now') 
+       WHERE scope = ?`,
+      [account.did, DEFAULT_SCOPE],
+    );
+  } else {
+    // Insert new record
+    await platformService.dbExec(
+      `INSERT INTO active_identity (scope, active_did, updated_at) 
+       VALUES (?, ?, strftime('%Y-%m-%dT%H:%M:%fZ','now'))`,
+      [DEFAULT_SCOPE, account.did],
+    );
+  }
+  
   await platformService.updateDidSpecificSettings(account.did, {
     isRegistered: false,
   });