Santander to Offer Loans Backed by Agricultural Commodity Tokens

Santander is processing the anticipation of offering loans backed by tokens that are collateralized successful cultivation products. The slope has partnered with Agrotoken, a institution that launched a bid of cultivation commodity tokens already being utilized successful agriculture-related markets to marque transactions. A aviator trial has been conducted to validate the strategy utilized to nutrient these loans.

Santander Runs Grain-Backed Loans Pilot Test successful Argentina

The Spanish multinational slope Santander has announced it is processing a strategy to connection loans that would beryllium backed by commodity tokens. The inaugural has been launched successful concern with Agrotoken, an Argentinian startup that developed a radical of grain-backed tokens allowing producers to transact with their commodities.

According to a property merchandise by Santander Argentina, a trial tally of the strategy has already been conducted, and Argentinian producers validated the bundle merchandise and its state. Santander reports this is the archetypal merchandise of its kind, linking fiscal products with cultivation tokens, including blockchain services to facilitate transactions.

Fernando Bautista, caput of agrobusiness astatine Santander Argentina, stated:

This is the archetypal clip that a work level uses blockchain exertion and crypto assets to grow the cultivation recognition marketplace and merchandise the concern imaginable of the producer.

The tokens created by Agrotoken are three: SOYA, CORA, and WHEA. Each 1 of these tokens is backed by a ton of atom (corn, soy, oregon wheat) that the shaper delivered to a atom collector. The token is past issued by a decentralized strategy that uses “Proof of Grain Reserve” to validate the beingness of the atom for each transaction.

Applied Tokenization

Santander believes this token strategy volition facilitate the instauration of a full caller business, wherever cultivation producers volition beryllium capable to get financing successful a straightforward way, utilizing their ain products arsenic collateral. Fintech is 1 of the hottest fields for Santander successful Argentina, and the slope announced it volition put $225 cardinal successful the state to modernize its bundle and hardware infrastructure to connection caller products to its customers. This is according to Ana Botin, president of Santander.

The Agrotoken assets person been utilized successful respective operations since 2021, helping producers to get machinery and different materials successful a simplified fashion. Santander’s involvement successful crypto is not new, arsenic the slope is already prepared to connection a cryptocurrency ETF merchandise successful Spain.

What bash you deliberation astir Santander’s indebtedness strategy backed by cultivation tokens? Tell america successful the comments conception below.

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