diff --git a/packages/credentials/src/V1/KiltCredentialV1.spec.ts b/packages/credentials/src/V1/KiltCredentialV1.spec.ts
index 06ee1fa84..27c30b094 100644
--- a/packages/credentials/src/V1/KiltCredentialV1.spec.ts
+++ b/packages/credentials/src/V1/KiltCredentialV1.spec.ts
@@ -28,8 +28,13 @@ it('exports to VC including ctype as schema', async () => {
   expect(() => validateStructure(VC)).not.toThrow()
 })
 
-it('it verifies valid claim against schema', async () => {
-  await expect(validateSubject(VC, { cTypes: [cType] })).resolves.not.toThrow()
+it('it verifies valid claim against nested schema', async () => {
+  await expect(
+    validateSubject(VC, { 
+      cTypes: [cType], 
+      nestedCType: cType 
+    })
+  ).resolves.not.toThrow()
 })
 
 it('it detects schema violations', async () => {
diff --git a/packages/credentials/src/V1/KiltCredentialV1.ts b/packages/credentials/src/V1/KiltCredentialV1.ts
index 557322099..a8a753c6f 100644
--- a/packages/credentials/src/V1/KiltCredentialV1.ts
+++ b/packages/credentials/src/V1/KiltCredentialV1.ts
@@ -336,6 +336,7 @@ const cachingCTypeLoader = newCachingCTypeLoader()
  * @param options Options map.
  * @param options.cTypes One or more CType definitions to be used for validation. If `loadCTypes` is set to `false`, validation will fail if the definition of the credential's CType is not given.
  * @param options.loadCTypes A function to load CType definitions that are not in `cTypes`. Defaults to using the {@link newCachingCTypeLoader | CachingCTypeLoader}. If set to `false` or `undefined`, no additional CTypes will be loaded.
+ * @param options.nestedCType - If provided, validates using nested CType validation with this CType.
  */
 export async function validateSubject(
   {
@@ -345,7 +346,12 @@ export async function validateSubject(
   {
     cTypes = [],
     loadCTypes = cachingCTypeLoader,
-  }: { cTypes?: ICType[]; loadCTypes?: false | CTypeLoader } = {}
+    nestedCType = null, // Changed to ICType | null with null default
+  }: { 
+    cTypes?: ICType[]; 
+    loadCTypes?: false | CTypeLoader;
+    nestedCType?: ICType | null; // Type definition updated
+  } = {}
 ): Promise<void> {
   // get CType id referenced in credential
   const credentialsCTypeId = type.find((str) =>
@@ -385,6 +391,16 @@ export async function validateSubject(
       [key.substring(vocab.length)]: value,
     }
   }, {})
-  // validates against CType (also validates CType schema itself)
-  CType.verifyClaimAgainstSchema(claims, cType)
-}
+
+  // Check if nestedCType is provided and perform appropriate validation
+  if (nestedCType) {
+    await CType.verifyClaimAgainstNestedSchemas(
+      nestedCType,
+      cTypes,
+      claims
+    )
+  } else {
+    // Regular validation
+    await CType.verifyClaimAgainstSchema(claims, cType)
+  }
+}
\ No newline at end of file