The Shanghai Financial Regulatory Bureau has issued a policy document titled ‘Several Measures to Promote the High-Quality Development of Digital Finance in Shanghai’s Banking and Insurance Industries,’ instructing regional financial institutions to steadily broaden supply chain financing using big data and blockchain technology, according to Gate US. The measures standardize key trade and logistics financing mechanisms, including accounts receivable financing, supply chain bill financing, warehouse receipt pledges, and order financing.
The regulator emphasized using distributed ledgers to improve transaction authenticity, prevent fraudulent inventory pledging, and deepen comprehensive risk protection across advanced manufacturing supply chains. This move underscores China’s push to integrate blockchain into trade finance infrastructure, enhancing transparency and reducing risks associated with duplicate financing and fraudulent documentation.
In a related development, Swiss blockchain securities infrastructure provider Obligate AG announced that its flagship trade finance yield instrument, oTFY, is officially live on Morpho, one of the largest decentralized lending platforms, according to EIN Presswire. The deployment allows institutional investors holding tokenized trade finance receivables—which represent short-term debt financing goods moving internationally in transit—to utilize those assets directly as collateral for borrowing. The initiative bridges trillions of dollars in real-world international trade credit directly with on-chain liquidity pools, enabling capital optimization for global trade participants.
These developments signal a growing convergence of traditional trade finance and blockchain technology. Shanghai’s regulatory push aims to formalize blockchain use in supply chain finance, potentially reducing fraud and improving access to credit for small and medium-sized enterprises. Meanwhile, Obligate’s oTFY on Morpho demonstrates how tokenized trade assets can unlock liquidity in decentralized finance markets, offering institutional investors new avenues for capital deployment.
Trade implications are significant: standardized blockchain-based supply chain finance could streamline cross-border trade, reduce financing gaps, and enhance risk management. As regulators and private entities advance blockchain adoption, the global trade ecosystem moves closer to a more efficient, transparent, and inclusive financial infrastructure.
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