China's National Commodity Warehouse Receipt Registration Center (NCWR) launched a blockchain-based warehouse receipt platform in Shanghai, completing its first digital transactions involving non-ferrous metals. The platform, called Cangdeng Chain, was developed with support from CMST Development, Bank of Communications, Shanghai Data Group, and the National Blockchain Technology Innovation Center, built on China's Shipping and Trade Chain. The initiative addresses risks associated with forged warehouse receipts, duplicate financing, and unclear ownership records that Shanghai authorities previously identified as threats to supply chain security. By May 2026, NCWR had registered more than 277,000 metric tons of commodities, with warehouse receipts totaling approximately 140 million yuan and inventories reaching 26.2 billion yuan. The platform operates under revised Pudong regulations governing blockchain-based warehouse receipt registration, with digital warehouse receipt requirements taking effect on September 1, 2026.
NCWR Processes First Blockchain Transactions Through Cangdeng Chain
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. The Cangdeng Chain platform generates warehouse receipts directly on a blockchain ledger instead of relying on documents created through separate databases and uploaded afterward. The platform maintains a unified ledger that records the issuance, registration, transfer, and cancellation of warehouse receipts throughout their lifecycle. 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.
NCWR began operations in 2022 by registering commodities including bonded copper, low-sulfur fuel oil, and TSR 20 rubber. Building on that registration network, NCWR 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 enabled companies to secure 17.4 million yuan in funding, including loans processed entirely through digital channels.
Smart Contracts Automate Registration and Verification Procedures
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.
Pudong Regulations Establish Framework for Digital Warehouse Receipts
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. The regulations take 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.
Physical Verification Requirements Remain Despite Blockchain Records
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. 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.
FAQ
What is the Cangdeng Chain platform launched by China?
The Cangdeng Chain is a blockchain-based warehouse receipt platform launched by China's National Commodity Warehouse Receipt Registration Center (NCWR) in Shanghai. It generates warehouse receipts directly on a blockchain ledger, maintaining a unified record of issuance, registration, transfer, and cancellation throughout the receipt lifecycle. The platform was developed with support from CMST Development, Bank of Communications, Shanghai Data Group, and the National Blockchain Technology Innovation Center, and is built on China's Shipping and Trade Chain.
How much commodity volume has NCWR registered through its systems?
By May 2026, NCWR 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. A pilot program with China Zheshang Bank had registered 993 metric tons of pledged commodities valued at more than 100 million yuan by May.
When do China's electronic document regulations for blockchain warehouse receipts take effect?
China's electronic document regulations governing blockchain-based warehouse receipt registration, transfers, and pledging take effect on September 1, 2026. Under the revised Pudong framework, digital warehouse receipts must remain identifiable, complete, tamper-resistant, and controlled by a clearly identifiable holder throughout their lifecycle.
