Implementation of measures to ensure security of transactions while ensuring privacy of user credentials is an area of challenge in digital transactions over a network. Integration of biometric pattern matching into an identity management system (IMS) enhances security of transactions and improves ease of use. Privacy of users in a biometric based system is improved by using keys generated directly from feature sets instead of conventional stored templates. This paper proposes a framework for integrating biometric key based authentication into an IMS.The generated keys need to be long, reproducible with high integrity and need to possess sufficient entropy. Generation of keys directly from feature traits poses a challenge due to intra and inter user variations inherent to biometric data. A novel methodology for generating and integrating crytpo keys into an identity management system is proposed. The keys have been extracted from iris trait. 300 bits keys have been extracted from iris datasets. The results are promising and can be extended to multi-modal biometric feature sets.