A China-based chemical producing heavyweight has reportedly released a new Blockchain Warehouse Receipt Platform, to assist the sector in fighting against the inclining operational costs and trade financing. 

Specifically, a surge in the necessity of environmental and safety solutions to help aid the effects of the global health pandemic has been the driving factor of the rising costs for petrochemical trade in the country. 

Big names in the sector have reportedly turned to blockchain as a viable solution to deal with obstacles the logistic cycle is facing, along with eliminating the high financing costs and delays a lot of corporations are struggling with. 

China’s first-ever digital warehouse receipt pledge financing transaction was reportedly finalized on September 27th, with the assistance from a blockchain that has IoT integration. 

Numerous big names in the petrochemical area of the country were reportedly involved in the transaction, nominally Sinochem Energy High-Tech, China Construction Bank Inner Mongolia Branch, and Nanchu Management Group. 

“From the application for issuance of warehouse receipts to the bank’s appropriation of the loan, it took less than one day with a cost 40% lower than that of common trade finance services in the market,”

The system reportedly provides a risks-focused measure, nominally fraudulent warehouse receipts, forged delivery documents, unclear property in goods, repeated pledges, impairment or loss of collateral – all are factors that contribute to the usual fights on goods property and warehouse receipt finance.