The Hashgraph Group and Merck have integrated the German tech maker’s product authentication technology with TrackTrace, a Hedera-based digital product passport platform introduced in February, as companies try to meet the European Union’s new requirements for supply chain transparency and traceability.
Under the agreement, Merck’s M-Trust technology integrates security markings into products and packaging that can be verified with a hand-held scanner. Authentication data is then captured on The Hashgraph Group’s TrackTrace platform, creating a digital record linked to a product’s Digital Product Passport.
The companies said the integration combines physical product authentication with blockchain-based traceability, allowing companies to verify both the authenticity of a product and its associated data.
Source: The Hashgraph Group on X.com
The platform focuses on two emerging EU compliance frameworks: digital product passports under the Ecodesign for Sustainable Products Regulation and traceability requirements under the EU Deforestation Regulation.
Merck is a science and technology company focused on healthcare, life sciences and electronics, while Switzerland-based Hashgraph develops enterprise blockchain and AI applications within the Hedera ecosystem.
According to the companies, the technology has already been demonstrated in a secret supply chain pilot. Potential use cases include the supply chains of food, pharmaceuticals, luxury goods and electronics, where companies are increasingly scrutinizing the provenance and authenticity of products.
The EU’s sustainability rules create a market for product traceability
The collaboration comes as companies prepare for upcoming digital product passport requirements under the European Union’s Ecodesign for Sustainable Products Regulation (ESPR), which came into effect in July 2024.
The regulation applies to most physical goods sold in the EU and is part of the European Green Deal, a broader effort to improve resource efficiency, expand the circular economy and increase transparency around the environmental impact of products.
Source: European Commission
Interest in blockchain-based trade and supply chain infrastructure extends beyond the EU. In March, authorities in Hong Kong and Shanghai agreed to study a blockchain-based cross-border platform under the Hong Kong Monetary Authority’s Project Ensemble initiative, which explores tokenized market infrastructure and digital financial rails.
The project will explore how trade documentation and commercial data can be integrated into trade finance applications, with the aim of streamlining cross-border trade and related financial services.