It is the first global experience in backing loans with tokens related to agricultural commodities such as soya beans, corn and wheat.
This digital solution will allow farmers and the agroecosystem to easily access a new financing system, expanding credit capacity by using tokenised assets.
A pilot test has already been carried out with Argentine farmers in order to validate how the product works technically and operationally.
Buenos Aires, 7 March 2022.
Agrotoken, the first global tokenisation infrastructure for agrocommodities, and Santander are developing the possibility of making loans secured by tokens related to agricultural products such as soya beans, corn and wheat.
A pilot test has already been carried out with Argentine producers in order to validate how the product works technically and operationally.
“This is the first global experience in backing loans with tokens based on agrocommodities such as soya beans, corn and wheat. Together with Santander, we are creating a number of financial products to provide farmers with a service where they can easily access a new system of credits backed by the sale of their grains,” said Eduardo Novillo Astrada, CEO and co-founder of Agrotoken.
“At Santander Argentina, we are leveraging technology and innovation to generate new business solutions that make life easier for farmers and expand their opportunities. This is the first time that a financial services platform has used blockchain and cryptoassets technology to expand the agricultural credit market and unlock the farmer’s business potential,” commented Fernando Bautista, head of Agribusiness at Santander Argentina.
Santander is focusing on technology to provide more and better services. That is why it is going to invest USD 225 million in this area and in Argentina, as Ana Botín, the Group executive chairman of the Santander Group, announced at the end of 2021 during her visit to this country.
This product represents a number of milestones, as it is the first time that a global financial services platform connects tokens based on agricultural products to financial products. It is also a new experience using blockchain technology to generate new businesses and make the process more efficient. Furthermore, it is the first collateral generated from cryptoassets based on agricultural products.
Each token represents one tonne of grain sold and delivered by the farmer to a wholesaler. In addition, these tonnes of grain are also validated through a Proof of Grain Reserve (PoGR) certificate, a system that is at all times transparent, secure, decentralised and auditable through a modern security infrastructure.
Once the farmers have their digital assets, the agrotokens can be used to carry out various transactions, taking into account the three price indices set in aggregate with the Matba Rofex group, which reflect in real time the value of the grains.
Since the beginning of 2021, several transactions have been carried out that demonstrate the usability of cryptoassets in exchange for different types of supplies, trucks, machinery and farms, etc.
Agrotoken is a global platform for the tokenisation of agrocommodities. It is made up of a team of professionals who are passionate about the land and the new digital economy. They are the creators of crypto-soya (SOYA), crypto-corn (CORA) and crypto-wheat (WHEA), the first grain-backed cryptoassets that help to save and to make transactions. Agrotoken is creating the next generation of agribusiness in the world. For more information: agrotoken.io
About Santander in Argentina
Santander Argentina is the leading private entity in the Argentine financial system by volume of deposits. The bank has 400 traditional branches, 8 social integration branches, 3 digital branches, 3 Work Cafés, over 4 million customers (including 2.2 million digital customers, more than 320,000 MSMEs and 1,300 corporates). It has a team of more than 8,000 employees and a presence in 22 provinces and in the city of Buenos Aires. Santander Argentina also has an extensive responsible banking programme focusing on higher education, with over 90 collaboration agreements in place with Argentine public and private universities.