China has introduced a blockchain-based warehouse receipt platform in Shanghai, marking the completion of its first digital transactions involving non-ferrous metals. The new platform, known as Cangdeng Chain, generates warehouse receipts directly on a blockchain ledger instead of relying on documents created through separate databases and uploaded afterward.
The initiative was launched by the National Commodity Warehouse Receipt Registration Center (NCWR) with support from CMST Development, Bank of Communications, Shanghai Data Group, and the National Blockchain Technology Innovation Center. The platform is built on China’s Shipping and Trade Chain and is designed to maintain a unified ledger that records the issuance, registration, transfer, and cancellation of warehouse receipts throughout their lifecycle.
The Cangdeng Chain platform creates warehouse receipts directly on a blockchain ledger, providing a unified and traceable record for commodity ownership, registration, transfers, and cancellations.
The first transactions processed through the platform involved nickel owned by Zhongxin Global Trading and copper held by Shanghai Wurui Metal Group. CMST Development issued the initial warehouse receipts, while NCWR completed the centralized registration process. As receipts move through the system, blockchain records capture key information, including ownership, commodity quantities, storage locations, and operational status, creating a transparent transaction history for authorized participants.
Smart Contracts Improve Verification and Financing
The platform incorporates smart contracts to automate selected registration and verification procedures involving warehouses, traders, banks, and other financial institutions. Rather than reconciling information across multiple independent databases, approved participants can review a single shared ledger that reflects the complete transaction history.
The blockchain-based approach is intended to reduce risks associated with forged warehouse receipts, duplicate financing, unclear ownership records, and the repeated use of the same inventory as collateral for multiple transactions. Shanghai authorities have previously identified fraudulent documentation and repeated pledging of warehouse assets as significant risks to supply chain security and the efficient allocation of capital.
NCWR began operations in 2022 by registering commodities including bonded copper, low-sulfur fuel oil, and TSR 20 rubber. By May 2026, the organization had registered more than 277,000 metric tons of commodities. During the same period, registered warehouse receipts totaled approximately 140 million yuan, while inventories recorded through its systems reached 26.2 billion yuan.
Building on that registration network, NCWR has expanded blockchain-based warehouse records into financing services. A pilot program with China Zheshang Bank had registered 993 metric tons of pledged commodities valued at more than 100 million yuan by May. An earlier financing initiative involving copper also enabled companies to secure 17.4 million yuan in funding, including loans processed entirely through digital channels.
Smart contracts automate portions of the registration and verification process, helping financial institutions reduce fraud risks while improving financing efficiency and transaction transparency.
Regulatory Support and Remaining Challenges
The financing initiatives are supported by revised Pudong regulations governing blockchain-based warehouse receipt registration, transfers, and pledging. Under the updated framework, digital warehouse receipts must remain identifiable, complete, tamper-resistant, and controlled by a clearly identifiable holder throughout their lifecycle.
Despite these technological advances, the blockchain ledger does not independently verify whether commodities physically remain inside warehouse facilities. As a result, physical inspections, secure data entry procedures, accountable warehouse operators, and effective inventory controls continue to play a critical role in maintaining the integrity of the system.
Although physical verification remains necessary, the platform provides a shared and tamper-resistant digital record that is expected to accelerate commodity financing, ownership transfers, and trading activities ahead of China’s electronic document regulations taking effect on September 1, 2026.
The launch reflects China’s broader efforts to modernize commodity trading infrastructure by combining blockchain technology with updated regulatory frameworks to improve transparency, reduce operational risks, and support more efficient financial services across supply chains.
