This study develops and tests an Extended Adoption Model to explore the factors influencing the adoption of blockchain-based traceability systems in the halal and sustainable textile sectors. The proposed model combines the understanding from multiple conceptual frameworks such as technology adoption theory, institutional theory, and stakeholder theory to investigate the factors influencing adoption of blockchain technology in the apparel sector based on responses from key stakeholders—consumers, producers/suppliers, and regulators who may have major concerns related to sustainability and Islamic ethics. Given that the value of blockchain technology essentially arises from its ability to ensure traceability, transparency, and immutability of transactions, this study examines multiple hypotheses about factors possibly having direct, mediating, and moderating effects on blockchain adoption. The study found several significant determinants, such as stakeholder perceptions of blockchain value, trust in halal integrity, and clarity of regulatory and market conditions. Factors of lesser significance include awareness of compliance requirements related to both halal and sustainability standards, technology gains, and concerns, thus underlining the need for wider communication, trust-building initiatives, and regulatory and policy frameworks.