One of China’s largest chemical producers has launched a new Blockchain Warehouse Receipt Platform to help the industry combat the rising costs of operations and trade financing.
An increased demand for more environmental and safety measures amid the pandemic has further driven costs up in China’s petrochemical trade. Small enterprises were already struggling to meet the credit conditions of financial lenders, as a lack of effective risk control and difficulties in securely tracking transaction processes of bulk commodities have led financial institutions to tighten lending on warehouse financing.
Major players in China’s petrochemical trade have now applied blockchain technology to address weak points in the logistics cycle and alleviate the high financing costs and delays that many enterprises are faced with.
China’s first-ever digital warehouse receipt pledge financing transaction was completed on Sept. 27 using a system that integrates blockchain with Internet of Things technology. The transaction involved state-owned petrochemical giant Sinochem Energy High-Tech, China Construction Bank Inner Mongolia Branch,