China has launched a blockchain warehouse receipt platform in Shanghai, completing its first digital transactions for non-ferrous metals. The system creates receipts on-chain instead of uploading documents produced through separate databases.
Known as the Cangdeng Chain, the platform was initiated by the National Commodity Warehouse Receipt Registration Center, or NCWR. CMST Development, Bank of Communications, Shanghai Data Group, and the National Blockchain Technology Innovation Center helped develop it.
Blockchain Receipts Bring Metals Onto a Shared Ledger
Built on China’s Shipping and Trade Chain, the system records the issuance, registration, and cancellation of receipts on a single ledger. CMST issued the first documents, while NCWR completed the centralized registration process.
The initial transactions involved nickel held by Zhongxin Global Trading and copper owned by Shanghai Wurui Metal Group. As each receipt moves through the system, the blockchain record tracks ownership, quantity, storage location, and operational status.
Moreover, smart contracts can automate selected registration and verification procedures for warehouses, traders, banks, and other financial institutions. As a result, authorized participants can review the same transaction history instead of reconciling information across separate systems.
This shared record is designed to address forged receipts, duplicate financing, unclear ownership, and the use of one inventory position for multiple transactions. Shanghai authorities had previously identified false documents and repeated pledging as risks to supply-chain security and capital allocation.
NCWR Expands Digital Registration Into Commodity Financing
NCWR began operations in 2022, initially registering bonded copper, low-sulfur fuel oil, and TSR 20 rubber. By May 2026, it had registered more than 277,000 tonnes of commodities.
At the time, registered receipts totaled 140 million yuan, while inventories recorded through its systems reached 26.2 billion yuan. Building on that registration network, NCWR has also extended blockchain warehouse records into financing.
A pilot with China Zheshang Bank registered 993 tonnes of pledged commodities worth more than 100 million yuan by May. An earlier copper program also secured 17.4 million yuan for companies, including fully online loans.
These financing initiatives are supported by revised Pudong regulations covering blockchain-based warehouse receipt registration, transfer, and pledging. Under the rules, digital documents must remain identifiable, complete, tamper-resistant, and under the control of an identifiable holder.
However, the ledger cannot confirm that non-ferrous metals remain physically inside a warehouse. Therefore, inspections, secure data entry, accountable operators, and warehouse controls remain essential.
Even with that limitation, the platform creates a shared, traceable record for faster financing, transfers, and commodity trading. China’s electronic-document rules further take effect on September 1, 2026.
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