Merck Integrates Anti-Counterfeit Technology With Hedera Ahead of EU Product Passport Rules

On-chain product certification arrives for regulated supply chains Science and technology company Merck has joined forces with The Hashgraph Group (THG) to bring physical product authentication onto the Hedera network. The collaboration, announced June 9, integrates Merck's M-Trust anti-counterfeit technology with THG's TrackTrace platform, a Digital Product Passport system built on Hedera and designed to meet the European Union's incoming product transparency rules.

The timing is regulatory. From 2026 onwards, the EU's Ecodesign for Sustainable Products Regulation (ESPR) requires products to carry a Digital Product Passport, accessible via QR code, detailing origin, composition, sustainability credentials and lifecycle. In parallel, the EU Deforestation Regulation (EUDR) obliges importers of commodities such as cocoa, coffee and timber to provide verified, farm-level traceability data. The pressure is already visible in the market: rising cocoa prices and stricter rules have driven an increase in adulteration and falsified sourcing documentation. The combined system works in two layers. Merck embeds invisible security markers directly into a product and its packaging using patented pigment technology. When scanned with an M-Trust handheld device, the product's physical authenticity is confirmed, cryptographically signed, and recorded within TrackTrace on the Hedera network, becoming a permanent part of the product's Digital Product Passport.

TrackTrace complements the physical verification with real-time tracking of origin, ethical sourcing, carbon emissions and quality assurance data. Each tracked process receives its own decentralized identifier, an immutable record that allows any authorized third party — companies, regulators or consumers — to independently audit a product or claim without relying on a central authority. "Digital records alone are not sufficient for high-stakes supply chains," said Stefan Deiss, CEO and co-founder of The Hashgraph Group. "Enterprises need to prove the physical product is genuine, not just the paperwork." Dr. Thomas Endress, head of M-Trust at Merck's Group Science & Technology Office, described the integration as "exactly the kind of end-to-end trust infrastructure that enterprises and regulators are asking for."

The integration was enabled through Merck's participation in the Enterprise Accelerator Program of The Hashgraph Association, the Swiss non-profit supporting the Hedera ecosystem. A first working supply chain pilot has already been demonstrated, with details expected to be announced soon. The architecture is designed to work across any sector where authenticity and compliance are non-negotiable, from food and pharmaceuticals to luxury goods, electronics and industrial components. For THG, the deal extends a rapid sequence of launches — IDTrust in August 2025, EcoGuard in December 2025, now deployed with government institutions in India and the Philippines, and BrandBoost in May 2026 — positioning Hedera-based infrastructure as an option for enterprises navigating the EU's compliance deadlines.