Digital Warehouse Receipts

Definition ∞ Digital warehouse receipts are electronic records representing ownership of commodities stored in a specific warehouse. These receipts can be tokenized on a blockchain, enabling easier transfer, trading, and financing of physical goods. They replace traditional paper documents with verifiable, immutable digital counterparts. This innovation enhances liquidity and reduces administrative overhead in commodity markets.
Context ∞ The adoption of digital warehouse receipts is a key area of innovation in global trade and commodity finance. Discussions center on legal recognition, interoperability with existing trade systems, and security standards for tokenized assets. The objective is to streamline logistics and financial transactions by leveraging distributed ledger technology for physical goods.