Shrapnel Becomes First Foreign Web3 Game Licensed on China's RWA Blockchain

AAA blockchain shooter Shrapnel is now the first foreign web3 game licensed to operate on China's official RWA (Real World Asset) Trusted Copyright Chain — a government-approved blockchain built to certify digital assets and IP. In plain terms: Shrapnel just became the first global game to legally offer tokenized in-game items in China.

This is a massive leap for both on-chain gaming and the growing push to merge digital ownership with traditional law. With China's gaming market worth over $40 billion, this move plants a huge flag for Shrapnel — and sets a bold precedent for other studios aiming to go global with web3.

A Big Win for Shrapnel — and Web3 Gaming

Neon Machine, the U.S.-based studio behind Shrapnel, partnered with Chinese government entities to launch a fully localized version of the game. That means it's not just translated — it's fully integrated with local digital asset laws and platforms.

The launch will include:

• A China-specific game launcher built for local players.
• A new marketplace powered by the RWA Copyright Chain, allowing players to buy, sell, and own tokenized assets with government-certified ownership.
• Exclusive cosmetic content tied to Shrapnel's in-game universe, available only to players in China.

This launch is more than a local port. It's a big step into China's digital future.

Real Ownership, Government Certified

The RWA Copyright Chain is China's official blockchain system for tracking and managing the rights of digital goods. For Shrapnel, this means everything from weapons skins to operator gear can now be minted, tracked, and traded under real legal protections — a big change from the often-grey areas of NFT games.

"This cooperation provides a compliant solution for overseas high-quality content to enter the Chinese market. Copyright is a global consensus. Based on this consensus, they build a blockchain digital asset system, ensure cross-border copyright circulation, and show the practical value of global promotion. Especially in the field of RWA (real-world assets), they provide a Chinese model for combining digital assets and the real economy."

Shrapnel's digital items will be recorded as legal assets — a step that could turn in-game collectibles into real-world commodities. That's especially important as China ramps up its efforts to digitize RWAs in sectors beyond gaming.

To help support the rollout, Neon Machine also struck a deal with Lingjing Game Labs, the digital arm of People's Daily, the Chinese government's official newspaper. Together, they'll handle:

• Localized game distribution
• Minting and issuing digital items
• Marketplace moderation and trading
• Compliance with China's asset and gaming laws

The Bigger Picture: A New Global Model?

This isn't just big for Shrapnel — it could be a glimpse of what's coming for the whole industry. For years, web3 games have struggled to get mainstream recognition, especially in regions with strict regulations. China, once known for heavy restrictions on blockchain, is now opening the door — but only to those who play by the rules.

"This milestone unlocks massive potential for both SHRAPNEL and web3 gaming in China," said Ken Rosman, CEO of Neon Machine. "It also sets a strong precedent for how decentralized paradigms and a nation's government can work together to drive growth on a global scale. This is just the beginning."

It's also a strategic win for Shrapnel. As an early mover in China's regulated space, the game now gets first-mover advantage in a country that's home to hundreds of millions of gamers.

What Is Shrapnel?

Shrapnel is an intense, first-person extraction shooter set in a dystopian near-future. The year is 2044. Meteorites laced with a rare mineral called Compound Sigma have turned parts of Earth into lawless battle zones. These areas, known as the Sacrifice Zones, are where players drop in, loot what they can, and fight to extract before someone else kills them.

Each match is high-risk, high-reward. Get out alive, and the loot is yours. Die, and you lose everything you brought in. It's fast, brutal, and full of choice — with blockchain tech powering the game's economy and marketplace.

The game is built by Neon Machine, a studio formed by developers who worked on Halo, Call of Duty, and Star Wars titles. They started in 2020 as a spin-off from HBO Interactive. Since then, they've raised funding, launched early access on Epic Games, and built one of the much awaited web3 shooters around.

Players can use the SHRAP token — launched on Avalanche — to buy cosmetics, gear, and more. Three billion SHRAP tokens were minted in 2023. And yes, in-game assets can be traded or sold in supported regions.

What Comes Next?

Shrapnel's full Chinese launch is planned for later this year. The team also revealed that a full whitepaper detailing how the China RWA Copyright Chain will handle asset ownership is on the way.

In the meantime, their Early Access is still live on the Epic Games Store. Players can join now by grabbing an Extraction Pack, which will unlock access and bonuses. The full launch is expected later in 2025.