Fashion and luxury brands have not abandoned blockchain technology after the speculative NFT boom. They have changed how they use it.

During the first NFT cycle, many projects focused on limited digital collectibles, virtual sneakers, profile pictures and metaverse wearables. Scarcity, resale prices and access to exclusive communities often received more attention than the long-term function of the token.

The current model is more closely connected to the physical product.

Luxury brands are using blockchain infrastructure for digital product passports, authenticity records, ownership registration, repair history, after-sales services and controlled resale. Fashion companies are also experimenting with digital garments and gaming assets, but these releases increasingly need to provide defined utility rather than rely only on collectible status.

The term NFT has not disappeared. Breitling, for example, still describes the digital passport supplied with each watch as an NFT. Other brands present similar infrastructure to customers as a digital passport, digital certificate or connected-product experience.

This shift in vocabulary reflects a shift in purpose. The token is becoming less visible, while the product record and customer service become more important.

Fashion NFTs were originally built around digital scarcity

The first wave of fashion NFTs applied familiar luxury concepts to digital goods:

• limited supply;
• exclusive access;
• recognisable branding;
• collectible ownership;
• secondary-market trading;
• virtual status.

Brands released digital sneakers, avatar clothing, virtual accessories and token-gated collections. Some NFTs were completely digital, while others could be exchanged for physical products.

This model attracted attention because it connected fashion, gaming, online identity and crypto markets. It also exposed brands and customers to several weaknesses.

A digital wearable could lose relevance when the supporting virtual world became less active. A token-gated collection could lose utility when the brand stopped producing experiences. A high secondary-market price could fall rapidly when speculative demand declined.

The closure of RTFKT became one of the clearest warnings. Nike announced the winding down of the virtual fashion business in December 2024, with operations ending in early 2025. In April 2025, purchasers filed a proposed class-action lawsuit alleging losses connected to the closure; the allegations were disputed legal claims rather than a final court judgment.

The case demonstrated an important limitation of brand NFTs: the blockchain token can remain accessible after the company stops maintaining the surrounding product.

Luxury brands are moving from NFT drops to digital passports

A digital product passport is a structured digital record connected to an individual product, product batch or model.

The passport may include:

• manufacturer information;
• material origin;
• production location;
• product identifier;
• authenticity information;
• warranty;
• care instructions;
• repair history;
• ownership registration;
• recycling guidance.

Blockchain can support the passport by creating a shared record of selected events and identifiers.

LVMH states that its Digital Product Passport documents stages of a product’s lifecycle from raw-material origin through production, use, repair and end-of-life options. The group continued deploying DPP systems during 2024 and plans gradual expansion across its Maisons.

This is different from selling a standalone NFT image.

The customer purchases the physical luxury product. The digital layer helps explain, verify, maintain and transfer that product throughout its lifecycle.

Aura Blockchain Consortium created shared luxury infrastructure

The Aura Blockchain Consortium was formed by LVMH, Prada Group and Cartier in 2021.

Its stated purpose was to give consumers access to product history and proof-of-authenticity information while allowing brands to record product lifecycle data.

The consortium approach is significant because luxury brands face similar infrastructure requirements:

• unique product identification;
• secure records;
• consumer privacy;
• controlled data access;
• long product lifecycles;
• international resale;
• counterfeit protection.

A shared technical layer can reduce the need for every brand to create an isolated blockchain system.

The consumer does not necessarily need to know which blockchain protocol operates behind the passport. The visible experience may be a normal brand website or mobile application opened through a QR code or NFC tag.

Loro Piana uses blockchain for product traceability

Loro Piana extended blockchain-supported traceability to its André linen shirt in 2024.

Customers can scan a QR code to access a digital certificate registered through Aura. The record provides information about the production journey, including where and when the material and finished garment were produced.

This use case illustrates the practical direction of luxury blockchain systems.

The digital record is not marketed primarily as a speculative collectible. Its purpose is to connect the customer with:

• material provenance;
• manufacturing information;
• product history;
• brand-controlled verification.

The QR code remains a data carrier rather than absolute proof of authenticity. A copied code could potentially open the same genuine record from another product. Strong verification also requires serial matching, controlled issuance and appropriate physical safeguards.

Bvlgari is connecting passports with after-sales services

At VivaTech 2026, LVMH described Bvlgari’s connected digital-passport experience for jewellery and watches.

Through the Bvlgari Touch application, customers can scan a creation and access product information, brand storytelling, certificates, warranty details, care recommendations and dedicated services. The system uses Aura Blockchain infrastructure.

This approach turns the digital passport into a customer-service channel.

Instead of ending after the sale, the brand relationship can continue through:

• care guidance;
• service bookings;
• warranty support;
• product documentation;
• event invitations;
• resale assistance.

For luxury brands, this ongoing relationship may be more commercially useful than receiving attention from a one-time NFT drop.

Breitling provides blockchain passports for watches

Breitling remains one of the clearest examples of a luxury product connected directly to an NFT.

The company states that each Breitling watch comes with a digital passport represented by an NFT. The passport functions as a blockchain-backed proof-of-ownership record and provides access to additional services.

Current product pages describe the passport as a private digital certificate securely linked to the watch through blockchain technology.

A watch passport can support:

• product registration;
• ownership records;
• warranty;
• service history;
• authenticity review;
• resale documentation.

The passport does not independently inspect the physical watch. Its reliability depends on the original issuance process, watch serial, brand records and continued connection between the physical item and digital certificate.

Digital passports can strengthen the resale market

Luxury resale requires buyers to assess authenticity, condition, provenance and ownership history.

A well-maintained digital product passport can support this process by providing a product-level record that follows the item after the original purchase.

The passport may help a resale platform or prospective buyer review:

• original issuer;
• product model;
• serial number;
• purchase registration;
• service history;
• repairs;
• previous transfers;
• reported loss;
• authenticity inspections.

This does not eliminate the need for physical inspection. A genuine passport could be presented alongside a counterfeit or modified product.

The strongest resale model combines:

1. A persistent digital product identifier.
2. A physical identifier connected securely to the item.
3. Brand or expert inspection.
4. A controlled ownership-transfer process.
5. Updated passport status.

The digital record can reduce information gaps, but it cannot evaluate physical condition through blockchain data alone.

Repair and care are becoming central NFT use cases

Luxury products are designed to remain in use for many years. Their digital records should therefore support more than the original sale.

A product passport can document:

• cleaning;
• repair;
• replacement components;
• restoration;
• warranty service;
• condition assessment.

LVMH describes its DPP strategy as covering product use, repair, reuse and recycling in addition to sourcing and production.

A repair provider could add a verified service event to the record. A later buyer could then determine whether the product was serviced by the brand, an authorised partner or an independent provider.

The record must identify who submitted the information. An on-chain timestamp proves when data was recorded, not whether the repair was completed properly.

Digital product passports support circular fashion

Fashion companies face increasing pressure to explain how products are sourced, used, repaired and eventually recycled.

A digital passport can help several participants access relevant product information:

• customers;
• repair providers;
• resellers;
• recyclers;
• customs authorities;
• market-surveillance bodies.

The EU Ecodesign for Sustainable Products Regulation establishes a framework for Digital Product Passports. The passport is intended to improve product traceability and provide different participants with access to appropriate information across the value chain. Specific data and implementation requirements are to be defined by product category.

The regulation does not require every product passport to be an NFT or use a public blockchain.

A brand may use blockchain as part of its DPP architecture, but creating an NFT does not automatically make the product compliant with EU requirements.

The final system must meet the applicable rules for:

• required data;
• identifier type;
• access rights;
• interoperability;
• availability;
• data backup;
• lifecycle coverage.

Fashion brands are still experimenting with digital wearables

Digital fashion has not disappeared.

Brands continue creating virtual garments, avatar accessories and gaming items. The difference is that projects increasingly connect these assets to an active application rather than sell them only as speculative collectibles.

Adidas, for example, currently offers a limited XOCIETY collaboration in which digital collectibles unlock branded in-game content and ecosystem rewards.

The utility is application-specific.

Owning the NFT does not mean the wearable functions in every virtual world or game. XOCIETY must recognise the asset, maintain the integration and continue operating the relevant content.

A useful digital-fashion NFT should explain:

• where the item works;
• which account or wallet is required;
• whether it is transferable;
• whether utility expires;
• what happens if the game closes;
• what licence applies to the design.

Phygital fashion combines physical and digital products

A phygital fashion product includes both physical and digital components.

Examples include:

• physical sneakers with digital twins;
• garments carrying NFC-enabled passports;
• luxury bags with ownership certificates;
• jewellery connected to digital services;
• physical products paired with game wearables.

The digital component can provide additional value through:

• virtual representation;
• authentication;
• membership;
• warranty;
• product history;
• exclusive content.

The physical and digital items may still become separated.

A holder could sell the NFT while keeping the garment unless the transfer process requires both components to move together.

Projects should state whether the NFT represents:

• a digital companion;
• a certificate;
• a redemption right;
• a transferable ownership claim;
• access to services.

The word “phygital” does not define the legal relationship automatically.

Fashion brands are using NFTs for loyalty

A fashion NFT can function as a persistent loyalty credential.

The holder may receive:

• early product access;
• private events;
• limited releases;
• personalised content;
• repair benefits;
• community participation;
• partner offers.

Unlike a conventional loyalty point balance, an NFT can potentially be held in an independent wallet and recognised by several applications.

Transferability may be inappropriate for some benefits. A personal customer status should not necessarily be sold to another user.

Brands can use different structures:

• transferable collector tokens;
• non-transferable credentials;
• expiring memberships;
• product-bound passports;
• account-linked benefits.

The correct model depends on whether the benefit belongs to the person, wallet or physical product.

Luxury brands are building direct owner relationships

A traditional brand may lose direct contact with the product owner after the item enters the secondary market.

A transferable digital passport can create a new connection.

When a second-hand buyer activates the passport, the brand may be able to offer:

• care instructions;
• maintenance;
• authenticity review;
• product history;
• events;
• complementary products;
• official resale support.

Arianee’s luxury and fashion model describes this lifecycle as passport activation followed by owner services, repair, transfer and resale support.

This creates commercial value without requiring the brand to promise that the NFT itself will appreciate.

The passport becomes customer infrastructure rather than a standalone investment product.

Brands are becoming more cautious about NFT terminology

Many consumers associate NFTs with volatile prices, wallet scams and abandoned collections.

For that reason, brands increasingly describe blockchain-based products using terms that explain the consumer function:

• digital passport;
• digital certificate;
• proof of ownership;
• connected product;
• product identity;
• authenticity record.

This does not necessarily mean the underlying token architecture has disappeared.

Breitling still uses the word NFT, while LVMH’s current communication emphasises the Digital Product Passport and lifecycle traceability.

The difference is largely product positioning.

“Buy our NFT” focuses attention on the token.

“Access your product passport” focuses attention on what the system does.

A blockchain passport is not an absolute authenticity guarantee

A brand-issued passport can provide strong evidence when it is connected correctly to the physical item.

It does not make counterfeiting impossible.

Potential failures include:

• copied QR codes;
• cloned basic NFC tags;
• removed physical identifiers;
• incorrect serial matching;
• compromised issuer accounts;
• fraudulent transfer records;
• counterfeit products paired with genuine digital records.

A verification result should explain its scope.

It may confirm that:

• the token was issued by the brand;
• the serial matches brand records;
• the NFC chip produced a valid response;
• the passport remains active;
• the product received an authorised service.

It should not claim that blockchain alone has physically inspected the product.

Digital passports must survive longer than marketing campaigns

Luxury products may remain in circulation for decades.

The associated digital infrastructure should remain available for a comparable period.

The EU DPP framework states that passports should remain accessible for the required period, including after insolvency, liquidation or cessation of the responsible economic operator. It also addresses backup copies and interoperable access.

Brands should therefore plan for:

• long-term domain management;
• metadata persistence;
• provider migration;
• blockchain compatibility;
• service-provider failure;
• recovery of physical identifiers;
• transfer between owners.

A passport that works only while one promotional website remains online is not suitable for a long-life luxury product.

Customers should not need advanced crypto knowledge

Most luxury customers do not want to manage gas fees, seed phrases and blockchain explorers to view a product certificate.

The strongest implementations make blockchain infrastructure almost invisible.

A typical customer experience may involve:

1. Scanning a QR code or tapping an NFC tag.
2. Opening a brand-controlled web page.
3. Activating the passport through an account.
4. Reviewing product information.
5. Registering ownership.
6. Accessing warranty or repair services.

Self-custodied NFT ownership may still be available for experienced users. It should not be mandatory when it creates unnecessary security risk.

The passport interface should never ask a customer to disclose a wallet recovery phrase.

Fashion NFTs still need clear intellectual-property terms

Owning a digital fashion NFT does not automatically transfer the copyright or trademark rights connected to the design.

The holder may receive:

• personal display rights;
• use in a specified game;
• limited avatar use;
• no commercial rights;
• a defined merchandise licence.

The brand usually retains rights to its:

• name;
• logo;
• garment design;
• campaign imagery;
• 3D files;
• trademarks.

A token owner should not assume that the NFT permits independent manufacturing, resale of copied 3D models or commercial use of the brand.

Token control, physical-product ownership and intellectual-property rights must be documented separately.

What fashion brands should define before launching an NFT product

A fashion or luxury company should begin with the customer and product lifecycle.

The project should answer:

1. What problem does the digital record solve?
2. Is the token connected to one product, batch or collection?
3. How is the physical identifier protected?
4. Who can update the passport?
5. Which data is public?
6. Can ownership be transferred?
7. What happens after resale?
8. Does the token unlock services?
9. Where are metadata and media stored?
10. What happens if the technology provider closes?
11. Which rights does the customer receive?
12. Does the system need an NFT at all?

A database-based passport may be sufficient for some products.

Blockchain becomes more relevant when the brand requires independent verification, shared lifecycle records, cross-platform recognition or transferable product identity.

What customers should check

Before relying on a fashion or luxury NFT, customers should review:

The official issuer

Confirm that the token or passport was created by the brand or an authorised partner.

The physical identifier

Determine whether the item uses a QR code, NFC tag, secure chip or serial number.

The product match

Compare the displayed model, colour, size and serial with the physical item.

The current status

Check whether the product is active, redeemed, reported lost or transferred.

The available services

Separate active benefits from promotional plans.

The transfer process

Confirm whether the NFT, product passport and physical item must move together.

The intellectual-property licence

Determine what use of the digital design is permitted.

Long-term availability

Review whether the passport depends on one website, application or technology provider.

Frequently asked questions about fashion and luxury NFTs

Are luxury brands still using NFTs in 2026?

Yes, but many current applications focus on digital product passports, certificates, traceability and customer services rather than speculative NFT collections. Breitling still explicitly describes its digital watch passport as an NFT.

What is a luxury digital product passport?

It is a digital record connected to a luxury product. It may include provenance, materials, warranty, care information, repair history and ownership services.

Does a blockchain passport prove authenticity?

It can provide strong issuer and product records, but it does not independently inspect the physical product. The physical identifier and issuance process remain essential.

Can a fashion NFT be used in every game?

No. A game or virtual platform must intentionally support the NFT, its files, metadata and licence.

Can I resell a product through its NFT?

Only when the brand or platform provides a process connecting the token transfer with physical ownership and delivery.

Does buying a fashion NFT transfer copyright?

No. Copyright and commercial-use permissions depend on a separate licence or valid assignment.

Is a digital product passport legally required for fashion?

The EU has established a DPP framework, but specific obligations and data requirements depend on product-category rules and implementation timelines. Creating an NFT alone does not establish compliance.

What happens if the brand closes its NFT programme?

The token may remain on-chain while services, media or utility disappear. Long-term passport systems need continuity and backup planning.

Why are brands avoiding the word NFT?

Many customer-facing products now emphasise the practical function—such as a digital passport or certificate—rather than the underlying token technology.

Can a digital passport improve resale?

It can help provide provenance, service and ownership records. Physical inspection is still necessary to assess authenticity and condition.

Fashion NFTs are becoming product infrastructure

The speculative fashion NFT model treated digital scarcity as the main product.

The emerging model treats blockchain as infrastructure supporting the physical item.

A digital passport can connect the customer with a product’s origin, warranty, care, repair, resale and end-of-life options. A digital wearable can provide value inside a specific game. A loyalty token can organise access to continuing brand services.

These applications are less visible than high-profile NFT drops, but they are more closely connected to the real needs of fashion and luxury businesses.

The successful projects will not be those that place the largest number of garments on a blockchain.

They will be those that maintain an accurate connection between the brand, physical product, owner and lifecycle record.

After the hype, fashion NFTs are becoming less about selling tokens and more about supporting products that customers already want to own.

Risk notice: This article is provided for general educational and informational purposes. It is not legal, technical, financial, tax or investment advice. Fashion NFTs and digital passports may depend on brands, technology providers, physical identifiers, external platforms and mutable metadata. Blockchain records do not provide an absolute guarantee of physical authenticity or continued utility.