Spanish banking giant Santander launched loans backed by tokenized wheat and corn and with the help of blockchain technology it can offer new opportunities for farmers across the world so let’s read furhter in today’s latest blockchain news.
The Spanish banking giant Santander launched loans backed by tokenized corn and wheat after partnering with Agrotoken to provide the token-backed lending service. Agrotoken is an Argentina-based agricultural commodities platform and it Is the first global infrastructure for the tokenization of the agro community. The partnership will allow farmers to take out loans that are backed by the Agrotoken commodity tokens and some of these include Corn, Soybeans, and Wheat.
According to the bank, the tokens will allow farmers and the rest of the agroecosystem to have easy and fluid access to the financing system but also expand their credit capacity by using tokenized grains. The pilot project will be tested in Argentina where the group will invest up to $225 million. Santander Group President Ana Botin announced the investment back close to the end of 2021 before explaining what it was for. The head of Agribusiness at the bank, Fernando Bautista said that blockchain technology shows how new opportunities can be used in the agriculture business:
“We rely on technology and innovation to generate new business solutions that make life easier and expand opportunities for agricultural producers.”
The co-founder of Agrotoken, Eduardo Noviloo Astrada noted:
“This is the first world experience that supports loans with tokens based on agricultural commodities, such as soybeans, corn, and wheat.”
They asserted that blockchain technology can make storing agricultural products much more efficient and it is also the first guarantee from the crypto assets based on the agricultural products. According to Agrotoken, there’s a ton of grain delivered in the store that supports it so all users can tokenize the grains online and receive the tokens in their digital wallets. The farmers can store the tokens in their digital wallets and can become accessible both on PC and mobile. Also, they can exchange them for seeds, machinery, vehicles, fuel, services, and much more. They can now also use them as collateral for loans.
The system validates each ton with PoGR network which is advertised as a secure and decentralized system with a multichain infrastructure that uses the tech of a few networks. For example, it can use ETH, Algorand, and Polygon depending on the use cases for each. The tokenized commodities are not something new in the crypto space because last year we saw SWIFT creating plans to explore tokenized securities like commodities.
