Intro
A new pilot from The Hashgraph Group, Merck and PwC Germany is bringing digital product passports to the cocoa sector, giving smallholder farms a clearer path toward meeting upcoming EU deforestation rules.
Building a Trusted Record for Cocoa
The initiative brings together three distinct capabilities: The Hashgraph Group's TrackTrace platform for digital product passports, Merck's M-Trust system for verifying physical authenticity, and PwC Germany's consulting know-how. Combined, they create a tamper-resistant digital record that backs up claims about where cocoa comes from, how it was handled, and whether it meets quality and compliance standards.
The timing is no accident. Cocoa processors are under growing pressure to satisfy the EU's deforestation due diligence rules, which require proof that goods can be traced back to their origin without ambiguity. This system is built to give companies that proof — showing a product wasn't grown on deforested land, was produced legally, and can be tied to a verified location.
Quote:
"This solution shows how cocoa traceability can move beyond fragmented documentation and self-declared claims."
— Stefan Deiss, CEO & Co-Founder, The Hashgraph Group
Linking Digital Records to Physical Products
Under this system, every unit of product gets its own passport. A digital twin tracks each item's journey — origin, handling, quality checks, compliance milestones — all logged on TrackTrace's Hedera-based ledger. Merck's M-Trust layer adds a physical check, confirming that what's being scanned is the real product and not a counterfeit.
According to Thomas Endress, who heads M-Trust at Merck, traceability data only becomes meaningful once it's tied to a physical authenticity check — pairing the two turns a paper trail into verified proof.
PwC Germany's contribution sits earlier in the chain: mapping out how the technology fits into a company's existing processes and translating operational challenges into workable solutions.
Quote:
"It addresses a critical challenge faced by cocoa processors: maintaining a verifiable trail not only of the finished product, but also of its raw materials."
— Husen Kapasi, Enterprise Blockchain Lead, PwC Germany
Where This Could Go Next
Cocoa is the test case, but the underlying architecture wasn't built for one industry alone. The Hashgraph Group sees applications across food, pharmaceuticals, luxury goods, electronics and industrial manufacturing — anywhere authenticity and compliance carry real stakes.
Kapasi frames the bigger opportunity this way: done right, compliance stops being a cost center and starts becoming something companies can use to build trust and stand out.
Key Takeaways
→ The Hashgraph Group, Merck and PwC Germany have piloted a joint digital-passport system for cocoa traceability.
→ Every physical product is matched to a digital twin logged on the Hedera network.
→ Merck's M-Trust technology adds a physical authenticity check on top of the digital record.
→ The system is designed to help processors meet EU deforestation due diligence requirements.
→ PwC Germany's role focuses on process design and making the technology operational at scale.
→ The model is built to extend beyond cocoa into pharma, luxury goods, electronics and industrial parts.