Argentinians are financing agriculture with crypto
Photo by Kanchanara on Unsplash
Agrotoken has partnered with Santander to launch “the world’s first experience” of providing resources through tokens based on agricultural commodities.
For each token, there is a ton of grains that the producer has sold and delivered to a grain trading and agricultural production company. Similarly, all tons are validated through a Proof of Grain Reserve (PoGR) – a transparent, secure, decentralized, and auditable system at all times through a modern security infrastructure.
Once producers have their digital assets, agro tokens can be used for various operations, taking into account three price indices defined in conjunction with the Matba Rofex Group (a market where financial and agricultural futures and options are traded), reflecting the real-time value of grains. Since the beginning of 2021, several operations have been conducted, demonstrating the usability of crypto assets in exchange for various types of inputs, trucks, machinery, and real estate, among other things.
Eduardo Novillo Astrada, CEO and co-founder of Agrotoken states that they are “creating, together with Santander, various financial products to offer agricultural producers a service through which they can easily and smoothly access a new credit system backed by the sale of their grains.”
“At Santander Argentina, we have technology and innovation to generate new business solutions that make life easier and expand opportunities for agricultural producers. This is the first time that a financial services platform using blockchain technology and crypto assets to expand the agricultural credit market and unleash the business potential of the producer,” said Fernando Bautista, Head of Agribusiness at Santander Argentina.
The bank announced that it “believes in technology” and will invest $225 million in this area in Argentina. According to them, it is the first time that a global financial services platform links tokens of agricultural products to financial products, using blockchain technology to generate new business and make the process more efficient.
