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Grain Tokens trade over Blockchain !!
One more fantastic usecase of Blockchain in Agri segment.
Till now we have seen various use cases which are tracking the Agri Produce, say Thank My Farmer from IBM or Walmarts Mangoes tracking etc which provides the complete info on the product/food tracking.
Now in this usecase we see the application of Technology to the next level where they implmented the Blockchain to trade the produce.
Selling of Agri produce by the producers is something which in many cases is not easy and accessable also not so transperant ! Getting the accurate and better prise is something which the farmers or producers are deprived off and were forced to sell off at less rates.
Though there are E mandies created for this purpose, they failed to bring in the transperency and price discovery.
Here in the usecase, we have a Blockchain solution where the entire produce is represented as a Token and parties can deal with it just like a Bond / Stock.
Its basically an NFT which represents the underlying grain stock and will be traded across the platform by the parties.
Parties intending to buy the produce from farmers will buy the token and thus trades with the underlying stock, thus eliminating the paperwork and selling the crop at a price that is defined in narrow markets.
Parties Involved –
Cerealia SA – Swiss crop-trading blockchain startup
Pilot Tested – Non-fungible token backed by 30,000 metric tons of Mexican white corn
In future, they are enabling facility for other players including hedge funds, banks and other investors to deal with these tokens.
A Swiss crop-trading blockchain startup has piloted the use of technology that will allow grain to be traded using virtual tokens.
Cerealia SA created a non-fungible token backed by 30,000 metric tons of Mexican white corn, according to Filipe Pohlmann Gonzaga, chief operating officer of the Pully, Switzerland-based company. The token was issued by Mercanta for grain stored at the Triple T terminal, both owned by Mexico’s Grupo Ceres.
Token deals could help eliminate paperwork and costs associated with many grain transactions that take place over the counter. Trade houses and other grain holders can issue tokens for their supply, which would then be traded on Cerealia’s blockchain platform without the need for physical documents that still underpin the bulk of commodity deals.
“The token can be easily traded,” Pohlmann said in a phone interview. “It also opens up trading to other players including hedge funds, banks and other investors.”
Blockchain startups have mushroomed in agriculture markets as companies seek to cut costs and boost efficiency. The technology also offers greater transparency in supply chains as consumers become more interested in where their food comes from. Crop giants including Bunge Ltd., Cargill Inc. and Viterra have teamed up to start their own ledger system Covantis SA.
Cerealia started off with grain deals in the Black Sea region, but has expanded to markets including Brazil and Egypt. The company, also present in Ukraine, will soon have a representative in Singapore and is targeting sub-Saharan Africa next. It has clients in almost 30 countries, with the latest Mexican deal helping to broaden its reach, Chief Executive Officer Andrei Grigorov said
Source of this Post – Hitech
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