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 businesses seek to comply with new European Union supply-chain transparency and traceability requirements.

Under the arrangement, Merck’s M-Trust technology embeds security markers into products and packaging that can be verified with a handheld scanner. Authentication data is then recorded 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 businesses to verify both the authenticity of a product and the records associated with it.

Source: The Hashgraph Group on X.com

The platform targets 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 Swiss-based Hashgraph develops enterprise blockchain and AI applications within the Hedera ecosystem.

According to the companies, the technology has already been demonstrated in an undisclosed supply-chain pilot. Potential use cases include food, pharmaceutical, luxury goods and electronics supply chains, where businesses face increasing scrutiny over sourcing and product authenticity.

Related: ECB pushes back on euro stablecoin proposals, citing financial stability risks

EU sustainability rules create market for product traceability

The collaboration comes as companies prepare for forthcoming Digital Product Passport requirements under the European Union’s Ecodesign for Sustainable Products Regulation (ESPR), which entered into force in July 2024.

The regulation applies to most physical goods sold in the EU and forms part of the European Green Deal, a broader effort to improve resource efficiency, expand the circular economy and increase transparency around product environmental impacts.

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 examine how trade documentation and commercial data can be integrated into trade finance applications, with the goal of streamlining cross-border commerce and related financial services.

Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

StarkWare has launched a new privacy framework for Starknet tokens that allows users to conceal balances and transaction details while preserving tools for compliance reviews and regulatory disclosures.

According to StarkWare, the newly released STRK20 standard brings privacy features to ERC-20 tokens on Starknet by enabling users to shield balances and transaction information on-chain.

The framework was announced on Tuesday as developers across the crypto industry continue looking for ways to offer transaction privacy without removing oversight mechanisms relied upon by institutions, exchanges, and regulators.

Providing details on how the system works, StarkWare co-founder and CEO Eli Ben-Sasson notes that STRK20 should not be viewed as a guarantee of regulatory approval or legal compliance. Instead, he said the framework follows a risk-based approach where privacy remains conditional.

Ben-Sasson explained that screening occurs before assets enter shielded pools and that viewing-key technology can be used to disclose information when lawful requests require access.

Unlike traditional privacy-focused cryptocurrencies that seek to obscure most transaction data, STRK20 introduces disclosure tools designed to balance confidentiality with accountability. 

Under the model described by StarkWare, transaction details remain hidden from the public while authorized disclosure remains possible under specific circumstances.

Privacy tools are adding disclosure mechanisms

Elsewhere in the sector, developers are adopting similar approaches to encrypted transactions. According to an announcement published on June 8, Sui opened public testing for confidential transfers on its Devnet. The feature encrypts token balances and transfer amounts while leaving sender and recipient addresses, token types, and transaction timestamps visible on-chain.

As reported by crypto.news, Sui stated that authorized parties can access relevant data when required for auditing or compliance purposes. A Testnet rollout is scheduled for later this year.

Rather than removing transparency entirely, the Sui design keeps selected transaction information visible while concealing financial details. The network described the system as a way to support privacy requirements without limiting access for compliance teams and auditors.

Taken together, the launches from StarkWare and Sui highlight how blockchain developers are increasingly incorporating controlled disclosure features into privacy products instead of relying on complete anonymity.

Recent events have increased focus on oversight

At the same time, several privacy-focused projects have recently faced scrutiny over compliance and operational safeguards.

Earlier this month, blockchain privacy company Zama said it would speed up work on its compliance roadmap after approximately $12.5 million in USDC held within its confidential USDC wrapper was frozen under a court order. According to Zama, the restriction was later removed once the underlying legal request was resolved.

Following the incident, the company highlighted disclosure tools and regulatory coordination procedures available for encrypted transactions.

Meanwhile, developers behind Zcash recently disclosed a vulnerability that raised concerns about the possible creation of counterfeit tokens. According to the project, an emergency network upgrade completed in early June addressed the issue, and no evidence of exploitation has been found.

Zcash developers noted that reconstructing historical activity inside shielded pools can be difficult after vulnerabilities are disclosed, a limitation that has renewed discussion around how privacy systems can provide confidentiality while still supporting verification and oversight when needed.

TLDR

• Paradigm and Hyperliquid Policy Center urged the U.S. Treasury to revise the proposed AML rule for stablecoin issuers.
• The groups argued that secondary market liability would impose obligations issuers cannot control.
• They supported FinCEN’s focus on primary market compliance where issuers know their customers.
• The letter asked regulators to narrow the definition of stablecoin payment-related activity.
• Hyperliquid Foundation funded the advocacy group with about $29 million worth of HYPE tokens.

Paradigm and Hyperliquid Policy Center urged the U.S. Treasury to revise a proposed anti-money laundering rule. The groups said the draft would impose strict liability on stablecoin issuers for transactions they cannot control. They asked regulators to narrow certain provisions before finalizing implementation under the GENIUS Act.

Hyperliquid and Paradigm Outline Concerns Over Secondary Market Liability

Paradigm and Hyperliquid Policy Center submitted a joint letter to the Treasury on Tuesday. The letter addressed a proposal issued in April by FinCEN and OFAC. The agencies seek to implement GENIUS Act provisions under the Bank Secrecy Act.

The proposal would treat stablecoin issuers as financial institutions for compliance purposes. However, the groups said some obligations extend beyond primary market activity. They argued that secondary market rules would create strict liability for actions issuers cannot police.

The letter stated, “We broadly support the proposed rule,” and endorsed FinCEN’s focus on primary market compliance. The groups supported tailoring obligations where issuers know their customers. They urged agencies to clarify or narrow secondary market requirements.

They said issuers only see wallet addresses and transaction amounts in public blockchain environments. Therefore, they argued that agencies should align AML and sanctions requirements with that reality. They warned that smart contract liability would exceed issuer control.

They wrote, “An issuer facing obligations it cannot meet on the secondary market has a strong incentive to deploy only to permissioned environments.”

They added that such an outcome would remove U.S.-regulated stablecoins from DeFi platforms. They stated that offshore alternatives could fill any resulting gap.

Groups Propose Specific Revisions Under GENIUS Act Framework

The joint letter recommended narrowing the definition of “payment stablecoin-related activity.” The groups also asked regulators to reconsider OFAC’s treatment of smart contract interactions. They said the current draft extends liability beyond issuer capacity.

The GENIUS Act passed last year with support from President Donald Trump’s administration. Lawmakers advanced the legislation to provide clearer rules for digital assets. Regulators now work through the rulemaking phase before full implementation.

Hyperliquid Foundation established the Hyperliquid Policy Center in February. The foundation funded the group with roughly $29 million worth of HYPE tokens. Jake Chervinsky serves as the center’s chief executive officer.

Paradigm backed Hyperliquid and supported the center’s advocacy efforts. The venture firm co-signed the letter addressed to Treasury officials. The document forms part of the public comment process.

FinCEN and OFAC will review submitted comments before issuing a final rule. The agencies proposed the draft in April under existing statutory authority. The implementation phase continues as regulators evaluate industry feedback.

Michael Saylor has pushed back against dilution concerns after Strategy sold approximately $181 million worth of MSTR shares and used part of the proceeds to expand both its Bitcoin holdings and cash reserves.

According to comments posted by Strategy Executive Chairman Michael Saylor on X, criticism surrounding the company’s latest capital raise misunderstands how shareholder value should be measured.

Saylor’s response came after Bitcoin analyst Matthew R. Kratter argued that recent share issuance diluted existing shareholders and pointed to a decline in Strategy’s BTC Yield metric between June 1 and June 8.

Data published by Strategy showed the company held 843,706 BTC while its assumed diluted shares outstanding increased to 384,180 during the period. Referring to those figures, Kratter said on X that the increase in shares outweighed the short-term benefit of additional Bitcoin per share.

Fresh scrutiny followed Strategy’s June 8 filing, which disclosed the sale of more than 1.4 million MSTR shares for roughly $181 million. Market participants also noted that company executives sold around $15 million worth of MSTR stock for tax-related purposes, while sentiment had already been pressured by Strategy’s disclosure of its first Bitcoin sale in more than four years at the end of May.

Saylor disputed the dilution argument by stating that BTC Yield measures growth in Bitcoin per share rather than total shareholder accretion. In his response, he said Strategy added both Bitcoin and cash during the transaction, making the outcome positive for shareholders when both assets are considered.

“Last week Strategy added ₿1,550 of BTC and $100 million of USD Reserve. When both assets are included, the transaction was accretive to MSTR shareholders.”

Strategy points to cash reserves alongside Bitcoin growth

Figures released by the company show Strategy acquired 1,550 BTC for approximately $101.3 million between June 1 and June 7. The purchase was completed at an average price of $65,332 per Bitcoin during a period of heavy market volatility.

Company disclosures indicate Strategy now holds 845,256 BTC, which Saylor said are valued at roughly $51.9 billion based on current market prices. The company also reported a year-to-date BTC Yield of 12.8% and a BTC Gain of 86,328 BTC.

At the same time, the latest fundraising increased Strategy’s dollar reserves by $100 million, lifting total cash reserves to about $1 billion. Those reserves have attracted additional attention following shareholder approval of a proposal to change STRC preferred stock dividend payments from a monthly schedule to semi-monthly distributions beginning this month.

Rising obligations remain a focus for analysts

A separate analysis published by Fortune has highlighted concerns about Strategy’s growing use of preferred stock and Bitcoin-backed financing. According to the publication, the company’s combined debt and preferred stock obligations have increased from approximately $6.9 billion in early 2025 to around $21.8 billion, with preferred stock issuances accounting for much of the increase.

Fortune also estimated that Strategy’s stock continues to trade roughly 31% above its net asset value and warned that the premium could come under pressure if Bitcoin prices fall or investor concerns about the company’s capital structure intensify.

Under a scenario modeled by Fortune in which Bitcoin (BTC) declines to $50,000, the company’s net asset value could fall to about $23 billion while liabilities remain unchanged.

Attention has also remained on Strategy’s funding flexibility after the company disclosed the sale of 32 BTC for about $2.5 million in late May, its first reported Bitcoin sale since December 2022.

In a previous research covered by crypto.news, JPMorgan described the transaction as largely symbolic and said it appeared intended to demonstrate flexibility toward preferred shareholders, while cautioning that future dividend commitments could raise questions if cash reserves are eventually depleted.