Spain-based international financial services provider, Santander revealed a collaboration with the tokenization platform for grain-backed assets, Agrotoken. The press release published by the company reveals that due to the partnership, the companies will provide loans with tokens based on soy, corn, wheat, and other grains for the first time.
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Thus, the industry of agriculture will have simple access to the innovative financial sector. Initially, the project will be tested in Argentina. At the end of 2021, the president of Santander, Ana Botín revealed plans to invest $225 M in Argentina to focus on technology and provide more and enhanced services.
The project presents a new experience of using blockchain tech to develop new business and increase the efficiency of processes. It's also the first guarantee from cryptocurrencies based on agricultural products.
Each crypto based on any type of grain, is supported by tons of grains in a store. The weight is validated through a PoGR (“Proof of Grain Reserve”), which is an open, secure, decentralized and auditable system using multichain infrastructure and technology of Ethereum, Polygon, and Algorand, defining the optimal use cases. Producers can have their digital assets and use them for various operations.