Banking group Santander has recently announced that it is launching a lending program to local farmers based on tokenized agricultural commodities in Argentina.
According to the announcement, the project is being implemented in partnership with local startup Agrotoken.
Novillo Astrada, CEO of Agrotoken, has said on the initiative:
“This is the world’s first experience of providing loans with tokens based on agricultural commodities such as soybeans, corn and wheat.”
Each SOYA, CORA and WHEA token corresponds to a ton of grain the farmer sold and delivered to the elevator. The process is verified by the PoGR system. The price of the asset is determined by the indices provided by Grupo Matba Rofex.