diff --git a/credentials/apps/badges/distribution/__init__.py b/credentials/apps/badges/distribution/__init__.py
deleted file mode 100644
index e69de29bb2..0000000000
diff --git a/credentials/apps/badges/distribution/backends.py b/credentials/apps/badges/distribution/backends.py
new file mode 100644
index 0000000000..0187e7b55c
--- /dev/null
+++ b/credentials/apps/badges/distribution/backends.py
@@ -0,0 +1,16 @@
+"""
+Badges distribution conventional hooks.
+"""
+
+from typing import Any
+from django.apps import AppConfig
+
+
+class BadgesBackendConfig(AppConfig):
+    """
+    Extended application config with additional Badge-specific logic.
+    """
+
+    # TODO: move backend conditional configuration here.
+    # - `plugin_app` check;
+    # - `is_enabled` check;
diff --git a/credentials/apps/badges/distribution/credly/credly_badges/apps.py b/credentials/apps/badges/distribution/credly/credly_badges/apps.py
index 458fe94233..86047f654a 100644
--- a/credentials/apps/badges/distribution/credly/credly_badges/apps.py
+++ b/credentials/apps/badges/distribution/credly/credly_badges/apps.py
@@ -1,4 +1,4 @@
-from django.apps import AppConfig
+from credentials.apps.badges.distribution.backends import BadgesBackendConfig
 from credentials.apps.plugins.constants import (
     PluginURLs,
     PluginSettings,
@@ -7,7 +7,17 @@
 )
 
 
-class CredlyBadgesConfig(AppConfig):
+class CredlyBadgesConfig(BadgesBackendConfig):
+    """
+    Credly distribution backend.
+
+    This app is built on the top of the credentials.apps.badges.
+    It allows configuration and issuance specific to the Credly (by Pearson) badges inside Open edX.
+    In addition in a context of Credly Organization:
+    - organization badge templates are used to setup Open edX badge templates;
+    - earned badges are distributed to the Credly service;
+    """
+
     name = "credly_badges"
     verbose_name = "Credly Badges"
 
diff --git a/credentials/apps/badges/distribution/credly/credly_badges/toggles.py b/credentials/apps/badges/distribution/credly/credly_badges/toggles.py
index 541c24375c..357e9dd83a 100644
--- a/credentials/apps/badges/distribution/credly/credly_badges/toggles.py
+++ b/credentials/apps/badges/distribution/credly/credly_badges/toggles.py
@@ -1,3 +1,32 @@
 """
 Credly Badges app toggles.
 """
+
+from edx_toggles.toggles import SettingToggle
+
+# .. toggle_name: CREDLY_BADGES_ENABLED
+# .. toggle_implementation: DjangoSetting
+# .. toggle_default: False
+# .. toggle_description: Determines if the Credentials IDA uses credly badges functionality.
+# .. toggle_life_expectancy: permanent
+# .. toggle_permanent_justification: Credly badges are optional for usage.
+# .. toggle_creation_date: 2024-01-16
+# .. toggle_use_cases: open_edx
+ENABLE_CREDLY_BADGES = SettingToggle('CREDLY_BADGES_ENABLED', default=False, module_name=__name__)
+
+
+def is_credly_badges_enabled():
+    """
+    Checks if credly badges app enabled.
+    """
+    return ENABLE_CREDLY_BADGES.is_enabled()
+
+
+def check_credly_badges_enabled(func):
+    """
+    Decorator for checking the applicability of a credly badges app.
+    """
+    def wrapper(*args, **kwargs):
+        if is_credly_badges_enabled():
+            return func(*args, **kwargs)
+    return wrapper
diff --git a/credentials/apps/badges/distribution/credly/requirements/base.in b/credentials/apps/badges/distribution/credly/requirements/base.in
index fb93b059bc..7e49e82ea7 100644
--- a/credentials/apps/badges/distribution/credly/requirements/base.in
+++ b/credentials/apps/badges/distribution/credly/requirements/base.in
@@ -1,2 +1 @@
 # Main requirements of the plugin application.
--c constraints.txt
diff --git a/credentials/apps/badges/distribution/credly/requirements/constraints.txt b/credentials/apps/badges/distribution/credly/requirements/constraints.txt
deleted file mode 100644
index 94595ab168..0000000000
--- a/credentials/apps/badges/distribution/credly/requirements/constraints.txt
+++ /dev/null
@@ -1,9 +0,0 @@
-# Version constraints for pip-installation.
-#
-# This file doesn't install any packages. It specifies version constraints
-# that will be applied if a package is needed.
-#
-# When pinning something here, please provide an explanation of why.  Ideally,
-# link to other information that will help people in the future to remove the
-# pin when possible.  Writing an issue against the offending project and
-# linking to it here is good.
diff --git a/credentials/apps/badges/distribution/credly_badges/admin.py b/credentials/apps/badges/distribution/credly_badges/admin.py
index 06c687112e..0745482413 100644
--- a/credentials/apps/badges/distribution/credly_badges/admin.py
+++ b/credentials/apps/badges/distribution/credly_badges/admin.py
@@ -2,8 +2,8 @@
 Admin section configuration for credly badges.
 """
 
-from .toggles import is_credly_badges_enabled
+from .utils import is_backend_enabled
 
-if is_credly_badges_enabled():
+if is_backend_enabled():
     # TODO: Define registering admin classes here `admin.site.register(...)`
     pass
diff --git a/credentials/apps/badges/distribution/credly_badges/apps.py b/credentials/apps/badges/distribution/credly_badges/apps.py
index 18d98f7f29..71175a23e0 100644
--- a/credentials/apps/badges/distribution/credly_badges/apps.py
+++ b/credentials/apps/badges/distribution/credly_badges/apps.py
@@ -5,11 +5,11 @@
     SettingsType,
     PROJECT_TYPE,
 )
-from .toggles import is_credly_badges_enabled, check_credly_badges_enabled
+from .utils import is_backend_enabled, if_backend_enabled
 
 
 class CredlyBadgesConfig(AppConfig):
-    name = "credentials.apps.badges.distribution.credly_badges"
+    name = "credly_badges"
     verbose_name = "Credly badges"
 
     plugin_app = {
@@ -27,9 +27,9 @@ class CredlyBadgesConfig(AppConfig):
                 SettingsType.TEST: {PluginSettings.RELATIVE_PATH: 'settings.test'},
             },
         }
-    } if is_credly_badges_enabled() else {}
+    } if is_backend_enabled() else {}
 
-    @check_credly_badges_enabled
+    @if_backend_enabled
     def ready(self):
         """
         Performs initial registrations for checks, signals, etc.
diff --git a/credentials/apps/badges/distribution/credly_badges/settings/base.py b/credentials/apps/badges/distribution/credly_badges/settings/base.py
deleted file mode 100644
index 2dba1c5832..0000000000
--- a/credentials/apps/badges/distribution/credly_badges/settings/base.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""
-Credly badges base settings.
-"""
-
-def plugin_settings(settings):  # pylint: disable=unused-argument
-    pass
diff --git a/credentials/apps/badges/distribution/credly_badges/settings/production.py b/credentials/apps/badges/distribution/credly_badges/settings/production.py
deleted file mode 100644
index 53a716219f..0000000000
--- a/credentials/apps/badges/distribution/credly_badges/settings/production.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""
-Credly badges production settings.
-"""
-
-def plugin_settings(settings):  # pylint: disable=unused-argument
-    pass
diff --git a/credentials/apps/badges/distribution/credly_badges/settings/test.py b/credentials/apps/badges/distribution/credly_badges/settings/test.py
deleted file mode 100644
index 2655a2c4ab..0000000000
--- a/credentials/apps/badges/distribution/credly_badges/settings/test.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""
-Credly badges test settings.
-"""
-
-def plugin_settings(settings):  # pylint: disable=unused-argument
-    pass
diff --git a/credentials/apps/badges/distribution/credly_badges/toggles.py b/credentials/apps/badges/distribution/credly_badges/toggles.py
deleted file mode 100644
index 9ecbbe285f..0000000000
--- a/credentials/apps/badges/distribution/credly_badges/toggles.py
+++ /dev/null
@@ -1,32 +0,0 @@
-"""
-Toggles for credly badges app.
-"""
-
-from edx_toggles.toggles import SettingToggle
-
-# .. toggle_name: CREDLY_BADGES_ENABLED
-# .. toggle_implementation: DjangoSetting
-# .. toggle_default: False
-# .. toggle_description: Determines if the Credentials IDA uses credly badges functionality.
-# .. toggle_life_expectancy: permanent
-# .. toggle_permanent_justification: Credly badges are optional for usage.
-# .. toggle_creation_date: 2024-01-16
-# .. toggle_use_cases: open_edx
-ENABLE_CREDLY_BADGES = SettingToggle('CREDLY_BADGES_ENABLED', default=False, module_name=__name__)
-
-
-def is_credly_badges_enabled():
-    """
-    Checks if credly badges app enabled.
-    """
-    return ENABLE_CREDLY_BADGES.is_enabled()
-
-
-def check_credly_badges_enabled(func):
-    """
-    Decorator for checking the applicability of a credly badges app.
-    """
-    def wrapper(*args, **kwargs):
-        if is_credly_badges_enabled():
-            return func(*args, **kwargs)
-    return wrapper
diff --git a/credentials/apps/badges/distribution/credly_badges/utils.py b/credentials/apps/badges/distribution/credly_badges/utils.py
new file mode 100644
index 0000000000..a73255cd45
--- /dev/null
+++ b/credentials/apps/badges/distribution/credly_badges/utils.py
@@ -0,0 +1,22 @@
+"""
+Toggles for credly badges app.
+"""
+
+from django.conf import settings
+
+
+def is_backend_enabled():
+    """
+    Checks if Credly Badges app enabled.
+    """
+    return "credly_badges" in settings.BADGES_CONFIG.get("backends", [])
+
+
+def if_backend_enabled(func):
+    """
+    Intercept action if Credly Badges backend is not activated.
+    """
+    def wrapper(*args, **kwargs):
+        if is_backend_enabled():
+            return func(*args, **kwargs)
+    return wrapper
diff --git a/credentials/apps/badges/settings/base.py b/credentials/apps/badges/settings/base.py
deleted file mode 100644
index 0b1a5982ef..0000000000
--- a/credentials/apps/badges/settings/base.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""
-Badges base settings.
-"""
-
-def plugin_settings(settings):  # pylint: disable=unused-argument
-    pass
diff --git a/credentials/apps/badges/settings/production.py b/credentials/apps/badges/settings/production.py
deleted file mode 100644
index 1f2087330e..0000000000
--- a/credentials/apps/badges/settings/production.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""
-Badges production settings.
-"""
-
-def plugin_settings(settings):  # pylint: disable=unused-argument
-    pass
diff --git a/credentials/apps/badges/settings/test.py b/credentials/apps/badges/settings/test.py
deleted file mode 100644
index f6bc2ae050..0000000000
--- a/credentials/apps/badges/settings/test.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""
-Badges test settings.
-"""
-
-def plugin_settings(settings):  # pylint: disable=unused-argument
-    pass
diff --git a/credentials/settings/base.py b/credentials/settings/base.py
index 2eb782f5a9..8f572b726d 100644
--- a/credentials/settings/base.py
+++ b/credentials/settings/base.py
@@ -585,3 +585,10 @@
         },
     },
 }
+
+# Badges Settings
+BADGES_CONFIG = {
+    "backends": [
+        "credly_badges",
+    ]
+}
\ No newline at end of file
diff --git a/requirements/base.in b/requirements/base.in
index 63b7c0413f..c750148724 100644
--- a/requirements/base.in
+++ b/requirements/base.in
@@ -54,7 +54,6 @@ xss-utils
 # Badges app baked-in backend plugins:
 -e credentials/apps/badges/distribution/credly
 
-
 # TODO Install in configuration
 git+https://github.com/openedx/credentials-themes.git@0.3.22#egg=edx_credentials_themes==0.3.22
 git+https://github.com/raccoongang/openedx-events.git@aci.main#egg=openedx_events