Digital credentials, such as micro-credentials, have emerged as an innovative solution to address the dynamic nature of the present-day job market, providing a means to recognise and validate specific skills acquired by individuals. However, we lack design knowledge on micro-credentialing systems aligned with European Union (EU) standards. This paper explores the current state of research on micro-credentials and examines the development of novel technological tools for skills recognition within the higher education (HE) and vocational education and training (VET) sectors. Following the design science research (DSR) methodology, we design and implement an innovative micro-credentialing system with a standardised terminology and categorisation of skills across the EU, ensuring consistency, transparency, and recognition. We present the results of the first design cycle, including an initial set of design requirements, a preliminary set of design principles, their prototypical instantiation and evaluation. Moreover, we outline a second design cycle and future planned research activities.