Federated Identity Management (FIM) is a model of identity management in which different trusted organization scan provide secure online services to their uses. Security Assertion Markup Language (SAML) is one of the widely-used technologies for FIM. However, a SAML-based FIM has two significant issues: the metadata (a crucial component in SAML)has security issues, and federation management is hard to scale. The concept of dynamic identity federation has been introduced, enabling previously unknown entities to join in a new federation facilitating inter-organization service provisioning to address federation management’s scalability issue. However, the existing dynamic federation approaches have security issues concerning confidentiality, integrity, authenticity, and transparency. In this paper, we present the idea of facilitating dynamic identity federations utilizing blockchain technology to improve the existing approaches’ security issues. We demonstrate its architecture based on a rigorous threat model and requirement analysis. We also discuss its implementation details, current protocol flows and analyze its performance to underline its applicability.