diff --git a/update-artifacts/repository/resources/conf/default.json b/update-artifacts/repository/resources/conf/default.json
index b14a66e04d..44b0fc4f76 100644
--- a/update-artifacts/repository/resources/conf/default.json
+++ b/update-artifacts/repository/resources/conf/default.json
@@ -492,6 +492,7 @@
   "apim.jwt.convert_dialect": false,
   "apim.jwt.signing_algorithm": "SHA256withRSA",
   "apim.jwt.claims_extractor_impl": "org.wso2.carbon.apimgt.impl.token.ExtendedDefaultClaimsRetriever",
+  "apim.jwt.binding_federated_user_claims": true,
   "apim.jwt.gateway_generator.impl": "org.wso2.carbon.apimgt.gateway.handlers.security.jwt.generator.APIMgtGatewayJWTGeneratorImpl",
   "apim.jwt.gateway_generator.enable_claim_retrieval":false,
   "apim.cache.gateway_token.enable": true,
diff --git a/update-artifacts/repository/resources/conf/templates/repository/conf/api-manager.xml.j2 b/update-artifacts/repository/resources/conf/templates/repository/conf/api-manager.xml.j2
index 0f528eb182..c2dc612805 100644
--- a/update-artifacts/repository/resources/conf/templates/repository/conf/api-manager.xml.j2
+++ b/update-artifacts/repository/resources/conf/templates/repository/conf/api-manager.xml.j2
@@ -67,6 +67,10 @@
         <!--ClaimsRetrieverImplClass>org.wso2.carbon.apimgt.impl.token.DefaultClaimsRetriever</ClaimsRetrieverImplClass-->
         {% endif %}
 
+        {% if apim.jwt.binding_federated_user_claims %}
+        <EnableBindingFederatedUserClaims>{{apim.jwt.binding_federated_user_claims}}</EnableBindingFederatedUserClaims>
+        {% endif %}
+
         <!-- The dialectURI under which the claimURIs that need to be appended to the
              JWT are defined. Not used with custom ClaimsRetriever implementations. The
              same value is used in the keys for appending the default properties to the