A project to improve traceability in the leather industry through Blockchain

Throughout 2024 and until August of this year, 2025, Leather Cluster Barcelona is developing the Leather Token Track project. In December 2024, the cluster received news of ACCIÓ’s approval of its support for this initiative.

Leather Token Track is a proof of concept that explores the application of blockchain technology within the leather industry in order to improve product traceability. This initiative demonstrates the potential of setting up a platform to record efficiently and transparently the transactions and movement of leather products from origin to end consumer. The project tests how these technological tools can facilitate sustainable and responsible practices in the industry.

Leather Token is a technology and innovation project: the proof of concept explores the use of blockchain to guarantee the immutability and security of data, which is key to complying with the geolocation and due diligence requirements imposed by the new European regulation. This project is perfectly aligned with the sustainability and transparency objectives established by the European Union through the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Reporting Directive (CSRD).

The main objective of Leather Token Track is to develop a proof of concept, based on a tokenisation and traceability platform, that records each transaction and movement of leather products immutably and securely. That is, to demonstrate the origin of hides as a raw material for the manufacture of leather. This system will allow all the players involved in the supply chain to access verifiable, reliable information on the origin, treatment, distribution and sale of leather products. Leather Token Track will not only benefit traceability but will also offer significant advantages for all the participants in the supply chain: raw material suppliers, manufacturers and fashion brands, and consumers.

But in addition to technology and innovation, Leather Token Track is a sustainability and environmental impact project: leather is highlighted as a natural and renewable material, focusing on its ability to be composted at the end of its useful life, thereby reducing waste and emissions. However, in order to generate consumer confidence, it must be possible to certify good animal, environmental and social practices, and this proof of concept should help bring transparency from farm to shop (Farm to Fashion).

The Leather Token Track proof of concept can help identify the key challenges in implementing robust traceability systems and establishing clear protocols for data collection and management.

This project is led by Leather Cluster Barcelona, which carries out its implementation, and involves the participation of the cluster member Font Palomas SA, a company specialising in the tanning and finishing of bovine hides for the manufacture of leather goods, belts and footwear.

After more than a year of work, with various meetings with the project participants, the conclusions are that the Leather Token Track proof of concept offers a significant opportunity for the leather industry to lead in technological innovation, sustainability and regulatory compliance. The validation of this platform may result in a positive transformation of the leather value chain, benefiting both companies and consumers and promoting a more sustainable future.

As mentioned, this project has the support of ACCIÓ, the public agency for the competitiveness of Catalan business attached to the Ministry of Business and Labour of the Generalitat de Catalunya, within the framework of the grants for competitiveness-strengthening initiatives for the bodies belonging to the Catalonia Clusters Programme relating, among other things, to the implementation of strategic changes, innovations and new trends in the cluster or in the sector’s companies.

Leather Cluster Barcelona is an environment of competitive cooperation for promoting cross-cutting, transformative strategic projects with the aim of driving forward the ecosystem of the Catalan leather sector within the framework of Shared Value policies. The cluster is an accredited body within the Catalonia Clusters programme and has the support of Acció.