Volvo Group tests its own cryptocurrency for supplier payments

Volvo Group has tested a proprietary cryptocurrency as part of an internal blockchain project designed to simplify transactions between the company and its suppliers.

Ivan Branco, Head of Information Management, AI and Analytics at Volvo Group, discussed the project in a recent Cardano Foundation interview. The experiment focused on a closed environment connecting Volvo with material and transport suppliers rather than creating a publicly traded cryptocurrency.

Volvo tests closed blockchain for supplier transactions

Branco said Volvo explored whether blockchain could create a shared transaction system for material suppliers, logistics providers and the company itself. The test included a proprietary cryptocurrency created specifically for the experiment.

“We have done explorations also with certain transport suppliers” to create an enclosed blockchain environment, Branco said. According to the Cardano Foundation’s summary, the project forms part of Volvo’s wider study of how blockchain can solve practical problems in manufacturing and supply chains.

The digital asset could support transactions inside the closed network without depending on a public cryptocurrency. Volvo has not disclosed the token’s technical design, blockchain network or whether the test involved transactions with real economic value.

Traceability and compliance drive wider blockchain interest

Volvo Group is also studying blockchain for supply-chain records and product traceability. Branco pointed to the difficulty of tracking the country of origin of individual components as products move through several suppliers before reaching the company.

Accurate records can become especially important when sanctions or trade restrictions apply. A shared blockchain could give participating companies access to records that are harder to alter while reducing the need to compare information stored across separate systems.

The project could also support product tracking as European companies prepare for wider use of Digital Product Passports. Volvo sees possible uses in areas such as remanufacturing, where companies need reliable information about components throughout a product’s lifecycle.

Earlier Volvo-linked blockchain work focused on cobalt

The latest experiment expands on blockchain work previously associated with Volvo’s automotive businesses. As previously reported by crypto.news, Volvo worked with supply-chain technology company Circulor in 2019 to track cobalt and improve visibility into the mineral’s origin.

That project used blockchain records to help trace cobalt through the supply chain. The system aimed to provide greater information about whether materials came from sources linked to conflict or child labor.

Related blockchain adoption later extended to Polestar. As reported by crypto.news, the Swedish electric vehicle company used blockchain technology to improve cobalt traceability in its battery supply chain.

The proprietary cryptocurrency test takes a different approach. Instead of focusing only on tracking materials, Volvo Group explored whether blockchain could also support transactions and shared records between companies operating within the same supply network.

Project remains experimental

Volvo Group has not announced plans to release the cryptocurrency publicly or deploy the system across its operations. The initiative remains an internal exploration and has not reached industrial-scale use.

Branco also identified several barriers to wider enterprise blockchain adoption, including integration with existing systems, scalability, maintenance and limited understanding of the technology inside companies.

The experiment therefore remains a test of whether a closed blockchain network can reduce complexity between suppliers rather than a move by Volvo into the public cryptocurrency market. The company has not announced a launch date or confirmed whether the proprietary digital asset will move beyond the testing stage.