TechFlow reported that on September 21, China News Network reported that Shanghai officially launched a pilot program for "commodity supply chain financing business based on blockchain technology". Shanghai Nonferrous Metals Exchange Co., Ltd., "Shanghai Port Cloud Warehouse" platform and the first four commodity trading companies settled in the platform signed a strategic cooperation agreement with Bank of Communications.

Liu Ping, deputy secretary-general of the Shanghai Municipal Government, said that the pilot project aims to promote the application of blockchain technology in supply chain finance through financial technology innovation and the role of the government guarantee fund. The participating parties will rely on the tamper-proof and traceable characteristics of blockchain, on-chain transaction evidence, electronic warehouse receipts and accounts receivable information to improve the authenticity of warehouse receipts, the authenticity of transaction data, the security of settlement and the timeliness of supervision.

The project is expected to meet the financing needs of small and medium-sized trading companies and promote supply chain finance to empower spot commodity trading. Several government departments including the Shanghai Municipal Commission of Commerce and the Municipal Party Committee Financial Office, as well as financial institutions such as the Shanghai Clearing House and Pujiang Digital Chain participated in the launch ceremony.