VeChain Strengthens Chinese Supply Chain Presence Through CAFA Alliance and Walmart Expansion

7 hour ago 1 sources positive

Key takeaways:

  • Strategic CAFA integration positions VET as a key infrastructure play in China's supply chain digitization.
  • Walmart's expanding product tagging signals real-world utility growth, potentially boosting long-term VET demand.
  • Monitor for enterprise adoption metrics as success hinges on onboarding CAFA's 130+ member companies.

VeChain, the enterprise-focused blockchain platform, has secured a strategic position within China's Animal Health and Food Safety Alliance (CAFA), becoming the alliance's sole blockchain provider and council member. The announcement was made on September 17th via a Medium post, where VeChain outlined its role in providing infrastructure and technical support to the alliance's over 130 member companies.

The CAFA alliance includes Chinese subsidiaries of major international brands such as Walmart, Starbucks, and McDonald's. VeChain's immediate goal is to onboard alliance members to its blockchain solutions, with the process already underway. One unnamed member has begun using VeChain's ToolChain platform, serving as a pilot for broader adoption.

CAFA previously utilized QR code-based tracking systems like the Food Trust Traceability Program for initiatives such as "Chicken 2.0," which provides data on hatchery, production environment, farm details, and certifications. VeChain aims to enhance this existing framework by moving traceability to a blockchain level, allowing all members to log key food production processes immutably. The long-term vision is for hundreds of thousands of businesses connected to alliance members to utilize VeChain's blockchain.

In a parallel development, VeChain's traceability solutions are seeing increased adoption within Walmart China. A recent social media update from a VeChain enthusiast highlighted that new products, including various egg brands, in Chinese Walmart stores now feature VeChain's blockchain tags. Consumers can scan these tags to trace the product's entire journey from producer to shelf.

This expansion builds on a partnership announced in June 2019, where Walmart China initially committed to using VeChain's technology to verify product authenticity. At the launch, 23 products were linked to the blockchain. The recent sightings confirm Walmart is following through on its plan to scale the technology's usage, demonstrating tangible progress in real-world application.

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