Volvo Group Tests Proprietary Token for Supplier Payments

Volvo Group ran a test of its own cryptocurrency inside a closed blockchain network for supplier payments, the company said. The experiment created a digital token that could move between Volvo and its material and transport suppliers without relying on a public crypto market.

Ivan Branco, the company's head of information management, AI and analytics, described the project in a Cardano Foundation interview. Volvo built the token for a sealed environment, not for public trading. Branco said the test aimed to see whether a shared blockchain could replace the separate transaction systems that suppliers and Volvo each maintain.

“We have done explorations also with certain transport suppliers” to create an enclosed blockchain environment, Branco said. The company has not disclosed which blockchain the token ran on or whether the test included real payments.

Volvo's crypto experiment is separate from its earlier supply-chain work. The company partnered with Circulor in 2019 to track cobalt using blockchain records. That system traced the mineral's origin to avoid conflict-linked or child-labor sources. Polestar, the Swedish electric-vehicle maker tied to Volvo, later adopted similar technology for its battery supply chain.