- A new financing alternative is emerging for the agricultural sector in Argentina.
- Agrotoken, the world’s first global infrastructure for tokenizing agricultural commodities, has partnered with Banco Galicia to offer bank loans guaranteed by soybean tokens.
- This marks a turning point in access to financing for producers, who can now use their digitalized crops as collateral to obtain more efficient and convenient credit lines.
Man Agro S.A., a leading company in the agribusiness sector, was the first to benefit from this innovative solution. The company used its soybean tokens stored at the Centro Agropecuario Modelo (CAM) silo as collateral to obtain a loan from Banco Galicia.
“This achievement represents a fundamental step towards the widespread adoption of agrotokens as a financial tool in the agricultural sector,” said Eduardo Novillo Astrada, CEO and co-founder of Agrotoken. “Our platform offers a unique solution by using digital grains as collateral, backed by a reliable asset. This allows for risk mitigation and more efficient financing for both parties, the bank and the producer.”
For Diego Sánchez Granel, President and CEO of Man Agro S.A., the possibility of using agrotokens as collateral has been a key differentiator: “This new alternative allows us to finance ourselves with a bank loan using the soybeans we have not yet sold as collateral. In this way, we can obtain liquidity in advance and optimize our cash flow.”
A new paradigm for agricultural financing
The alliance between Banco Galicia and Agrotoken opens up a range of possibilities for the agricultural sector. Producers now have an innovative tool to access financing in a simpler, more agile, and more convenient way.
“Agrotoken is a clear example of how Blockchain technology can be used to provide concrete solutions to the challenges of the agricultural sector,” said Juan Martín Guichon, CFO of Man Agro S.A. “The process of applying for the loan with Banco Galicia was very simple and the funds were credited almost immediately. This technology not only allows us to guarantee credit lines but could also be used as collateral to operate in MATBA/Rofex in the future.”
Agrotoken’s solution is currently integrated into the commodities market in both Argentina and Brazil. Its goal is to simplify and make transactions in the sector more efficient, providing financing access to producers and suppliers through their digitalized crops.
Tokenomics
Banco Galicia is a traditional Argentine institution that belongs to the Grupo Financiero Galicia. Founded in 1905, it has been listed on the Buenos Aires Stock Exchange for over a century and has become one of the most important financial entities in its country of origin.
Agrotoken is the world’s first global tokenization infrastructure for agricultural commodities. The company uses Blockchain technology to convert real grains into digital assets, creating tokens called SoyA, CORA, and WHEA, each backed by one ton of soybeans, corn, or wheat, respectively.
The tokens are registered on the Blockchain network, which guarantees their traceability and prevents counterfeiting. Tokenization allows for automating and streamlining operations, reducing costs and administrative times.
The tokens can be traded on global digital markets, opening up new opportunities for producers and marketers, and can be used as collateral to obtain loans and credit lines.
