diff --git a/infrastructure/eid-wallet/src-tauri/gen/android/.idea/kotlinc.xml b/infrastructure/eid-wallet/src-tauri/gen/android/.idea/kotlinc.xml
index 4cb74572..fe63bb67 100644
--- a/infrastructure/eid-wallet/src-tauri/gen/android/.idea/kotlinc.xml
+++ b/infrastructure/eid-wallet/src-tauri/gen/android/.idea/kotlinc.xml
@@ -1,6 +1,6 @@
 <?xml version="1.0" encoding="UTF-8"?>
 <project version="4">
   <component name="KotlinJpsPluginSettings">
-    <option name="version" value="1.9.25" />
+    <option name="version" value="1.9.23" />
   </component>
 </project>
\ No newline at end of file
diff --git a/platforms/blabsy-w3ds-auth-api/src/index.ts b/platforms/blabsy-w3ds-auth-api/src/index.ts
index b21e7adc..dfa785c9 100644
--- a/platforms/blabsy-w3ds-auth-api/src/index.ts
+++ b/platforms/blabsy-w3ds-auth-api/src/index.ts
@@ -4,7 +4,8 @@ import cors from "cors";
 import { config } from "dotenv";
 import path from "path";
 import { AuthController } from "./controllers/AuthController";
-import { initializeApp, cert, applicationDefault } from "firebase-admin/app";
+import { initializeApp, cert, applicationDefault, getApps } from "firebase-admin/app";
+import * as fs from "fs";
 import { Web3Adapter } from "./web3adapter";
 import { WebhookController, adapter } from "./controllers/WebhookController";
 
@@ -27,19 +28,67 @@ app.use(express.urlencoded({ limit: "50mb", extended: true }));
 const authController = new AuthController();
 
 // Initialize Firebase Admin SDK (only if credentials are available)
+let firebaseInitialized = false;
 try {
-    if (process.env.GOOGLE_APPLICATION_CREDENTIALS || process.env.FIREBASE_CREDENTIALS_PATH) {
-        initializeApp({
-            credential: applicationDefault(),
-        });
+    // Check if already initialized
+    if (getApps().length > 0) {
+        firebaseInitialized = true;
+        console.log("✅ Firebase Admin SDK already initialized");
+    } else if (process.env.GOOGLE_APPLICATION_CREDENTIALS || process.env.FIREBASE_CREDENTIALS_PATH) {
+        const credentialsPath = process.env.GOOGLE_APPLICATION_CREDENTIALS || process.env.FIREBASE_CREDENTIALS_PATH;
+        
+        // Explicitly load credentials from file if path is provided
+        if (credentialsPath && fs.existsSync(credentialsPath)) {
+            try {
+                const serviceAccount = JSON.parse(fs.readFileSync(credentialsPath, "utf8"));
+                initializeApp({
+                    credential: cert(serviceAccount),
+                });
+                firebaseInitialized = true;
+                console.log("✅ Firebase Admin SDK initialized with service account file");
+            } catch (fileError: any) {
+                console.error("❌ Failed to load service account file:", fileError.message);
+                console.error("   File path:", credentialsPath);
+                // Fall back to applicationDefault
+                try {
+                    initializeApp({
+                        credential: applicationDefault(),
+                    });
+                    firebaseInitialized = true;
+                    console.log("✅ Firebase Admin SDK initialized with applicationDefault (fallback)");
+                } catch (fallbackError: any) {
+                    console.error("❌ Failed to initialize with applicationDefault:", fallbackError.message);
+                }
+            }
+        } else {
+            // Try applicationDefault (for GCP metadata service or other default locations)
+            try {
+                initializeApp({
+                    credential: applicationDefault(),
+                });
+                firebaseInitialized = true;
+                console.log("✅ Firebase Admin SDK initialized with applicationDefault");
+            } catch (defaultError: any) {
+                console.error("❌ Failed to initialize with applicationDefault:", defaultError.message);
+                if (credentialsPath) {
+                    console.error("   Credentials path was set but file not found:", credentialsPath);
+                }
+            }
+        }
     } else {
         console.warn("⚠️  Firebase credentials not configured. Firebase features will be disabled.");
+        console.warn("   Set GOOGLE_APPLICATION_CREDENTIALS or FIREBASE_CREDENTIALS_PATH environment variable");
     }
 } catch (error: any) {
-    console.warn("⚠️  Failed to initialize Firebase Admin SDK:", error.message);
+    console.error("❌ Failed to initialize Firebase Admin SDK:", error.message);
+    console.error("   Stack:", error.stack);
     console.warn("⚠️  Firebase features will be disabled.");
 }
 
+if (!firebaseInitialized) {
+    console.warn("⚠️  Firebase Admin SDK not initialized. Webhook and watcher features may fail.");
+}
+
 // Initialize Web3Adapter
 const web3Adapter = new Web3Adapter();