A secure and transparent digital credential sharing arrangement which utilizes one or more cryptographic levels of indirection to obfuscate a sharing entity's credentials from those entities authorized to share the credentials. A security policy table is provided which allows the sharing entity to selectively authorize or revoke digital credential sharing among a plurality of entities. Various embodiments of the invention provide for secure storage and retrieval of digital credentials from security tokens such as smart cards. The secure sharing arrangement may be implemented in hierarchical or non-hierarchical embodiments as desired.