Merck and Hashgraph Launch Blockchain Traceability Solution

The Hashgraph Group and Merck have joined forces to integrate advanced product authentication technology with a blockchain-based digital product passport platform, a move aimed at helping businesses meet increasingly stringent European Union supply-chain transparency and traceability requirements.

The collaboration combines Merck’s product verification technology with TrackTrace, a digital product passport platform built on the Hedera network and introduced earlier this year. The initiative is designed to strengthen product authenticity verification while providing a secure and transparent record of supply-chain information.

Combining Authentication and Blockchain Traceability

Under the integration, Merck’s M-Trust technology embeds specialized security markers into products and packaging. These markers can be authenticated using handheld scanning devices, enabling businesses and supply-chain participants to verify whether products are genuine.

Once authentication is completed, the verification data is recorded on TrackTrace, creating a permanent digital record linked to a product’s Digital Product Passport. This process establishes a connection between physical product authentication and blockchain-based recordkeeping, providing businesses with an additional layer of trust and accountability.

The integration combines Merck’s physical product authentication technology with Hedera-based blockchain traceability, enabling companies to verify both product authenticity and supply-chain records through a unified system.

The companies indicated that the combined solution can help organizations address growing regulatory expectations while enhancing visibility across complex global supply chains.

Supporting New European Union Regulations

A key objective of the initiative is to assist businesses in complying with emerging European Union regulatory frameworks focused on sustainability, transparency, and product traceability.

The platform has been developed to support Digital Product Passport requirements under the Ecodesign for Sustainable Products Regulation (ESPR), as well as traceability obligations associated with the EU Deforestation Regulation. These frameworks require companies to provide more detailed information regarding product origins, sustainability credentials, and supply-chain activities.

The ESPR became effective in July 2024 and forms part of the broader European Green Deal strategy. The regulation applies to a wide range of physical goods sold within the European Union and aims to improve resource efficiency, strengthen circular economy initiatives, and increase transparency concerning environmental impacts throughout product lifecycles.

TrackTrace is designed to help enterprises meet upcoming EU Digital Product Passport and supply-chain transparency requirements by creating secure, verifiable records throughout a product’s journey.

Broad Industry Applications

According to the organizations, the technology has already been tested through a supply-chain pilot project, although details regarding the specific deployment were not disclosed.

The integrated solution is expected to support a variety of industries where product authenticity and traceability are critical. Potential applications include food supply chains, pharmaceutical manufacturing, luxury goods distribution, and electronics production. These sectors face increasing pressure from regulators, consumers, and business partners to demonstrate the authenticity and origin of products.

Merck, recognized for its operations in healthcare, life sciences, and electronics, brings expertise in product authentication and security technologies. The Hashgraph Group, based in Switzerland, focuses on enterprise blockchain and artificial intelligence solutions developed within the Hedera ecosystem.

Growing Interest in Blockchain-Based Trade Infrastructure

The partnership reflects a broader trend toward the adoption of blockchain technology in trade, logistics, and supply-chain management. Organizations worldwide are exploring distributed ledger solutions as a means of improving transparency, reducing fraud, and streamlining compliance processes.

Recent initiatives in Asia also highlight the growing interest in blockchain-powered infrastructure. Authorities in Hong Kong and Shanghai have reportedly begun examining the development of a blockchain-based cross-border platform under Project Ensemble, an initiative led by the Hong Kong Monetary Authority. The project aims to explore how trade documentation and commercial data can be integrated into trade finance systems to improve cross-border commerce and related financial services.

By linking physical security markers with blockchain-based Digital Product Passports, the collaboration provides a framework for trusted product verification and regulatory compliance across global supply chains.

As regulatory requirements continue to evolve, solutions that combine authentication technologies with blockchain traceability are likely to play an increasingly important role in helping businesses manage risk, improve transparency, and meet compliance obligations in international markets.

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