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Santander Argentina Partners with Agrotoken to Launch Loans Backed by Tokenized Crops

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The Argentinian branch of Spanish banking giant Santander, a multinational financial services firm has announced its partnership with Agrotoken, a blockchain company that tokenizes agricultural produce. According to a post on the blog of the bank, the business collaboration between the two companies will ensure that loans are given to farmers and anyone with interests in agro-investment, backed with the use of tokenized grains such as Corn, Wheat, and Soya.

The stablecoins that Agrotoken uses to store the grain tokens are corn (CORA), wheat (WHEA), and soy (SOYA). 

A lot of due diligence was put in place to actualize this business innovation geared at creating a flexible credit system for farmers. A pretest on the product was conducted, and it was successful, hence the recent launch of the partnership.

According to the report, a concept is used to validate the tons of grains delivered by each token, and it is called “Proof of Grain Reserve” (PoGR). It is a secured and transparent system that uses technology developed on Polygon (MATIC), Ethereum (ETH), and Algorand (ALGO).

Confirming the partnership in a statement, the CEO and Co-Founder of Agrotoken, Eduardo N. Astrada noted that, this collaboration with Santander, inculcating token-based agricultural crops such as wheat, corn, and soybeans into a loan system is the first of its kind, stating further that;

“together with Santander, we are co-creating various financial products to provide agricultural producers with a service with which they can easily and smoothly access a new credit system backed by their grains.”

The head of Agribusiness for Santander Argentina, Fernando Bautista also pointed out that the global bank is a firm driven by tech and innovation, geared at generating new business ideas, making life more comfortable, and expanding “opportunities for agricultural producers.”

Cryptocurrency and The Future of Banking

The central banks of nations, as well as multinational financial services firms, are swiftly shedding their skins from the traditional model of managing the economy and finance generally.

This is in a bid to consider a better-structured technological approach and the exploration of digital finance. From the central bank of Brazil to the central bank of the Philippines, to KPMG Canada, to DBS, Singapore’s largest bank, more and more global institutions are embracing blockchain technology in one way or another.

Santander’s partnership with Agrotoken is the first of its kind, a collaboration between a global financial services firm and an agricultural digital currency platform. The partnership is believed to herald the attention of many more investments in the virtual agro assets industry in the future.

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