Agrotoken, the world’s first global infrastructure for tokenizing agricultural commodities, has successfully facilitated the first bank loan backed by agrotokens through a partnership with Banco Galicia. This loan was granted to Man Agro S.A.
This financial service represents a milestone in the use of digitized grains, showcasing their potential to allow agricultural producers to secure financing using their digitized grains as collateral.
“Agrotoken offers a unique solution by using digital grains as collateral backed by a reliable asset, mitigating risks and ensuring more efficient financing for both the bank and the producer,” stated Eduardo Novillo Astrada, CEO and co-founder of Agrotoken.
“What motivated us to use agrotokens was the new alternative of securing a bank loan using soybeans that we have not yet sold as collateral,” explained Diego Sánchez Granel, President and CEO of Man Agro S.A. “We believe that soybeans spend too much time in storage without generating liquidity, and with this technology and new tools, digitalizing our soybeans allowed us to recognize their value like never before.”
For this transaction, Man Agro S.A. used its SoyA assets, previously stored and tokenized at the CAM (Centro Agropecuario Modelo) storage facility, as collateral to obtain a bank loan. This type of service offers new financing options for producers, fostering the development of the agro-industrial sector.
“Agrotoken is a clear practical example of using blockchain technology to facilitate financing opportunities for producers. The loan application process with Banco Galicia was very simple and agile, and the funds were credited almost immediately. This technology allows not only for financial or commercial credit lines to be guaranteed but could eventually be used as collateral for operations in MATBA/Rofex,” described Juan Martín Guichon, CFO of Man Agro S.A.
Agrotoken’s solution is currently integrated into the commodities market in Argentina and Brazil. Its goal is to simplify and make transactions in the sector more efficient by providing access to financing for producers and suppliers through digitized harvests.
Photo by Ivan Bandura on Unsplash
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