Recently, the Rosario Stock Exchange today cut its estimate of the soybean harvest by 5 million tons and corn by 8 million, as a result of the severe drought that affects much of the country. In terms of economic impact, it represents a loss of almost 5 billion
What is digital soy and why is it booming?
Unlike speculative digital instruments such as Bitcoin, the “tokenization” of soy allows the generation of a cryptoactive known as a “stablecoin”, which receives that name precisely because its underlying asset is a real and specific asset, which in this case is a ton of soybeans.
Recently, the company Agrotoken, obtained US$ 5 million in a financing round, led by Xperiment VC and investors such as ByMA (Bolsa y Mercados Argentinos), which will serve to continue with its expansion plans. It is an agricultural commodity tokenization platform that emerged in Argentina and allows blockchain technology to be combined with agriculture.
These tokens can be stored, or can be used as currency to buy products, services, or exchange them for goods. The company explains its work on its website as follows: “We transform grains into a digital asset, to store or exchange for supplies, services and other assets.”
A year and a half ago, Agrotoken presented its digital platform for grain tokens, called Criptosoja (SOYA) and Criptomaíz (CORA), the first worldwide in the sector.
As an example, a soybean token is equivalent to a ton of soybean harvested and stored in a silobag or stockpile. To access the tokens on the Agrotoken platform, the producer must present the certificate of deposit, the purchase contract and the assignment of rights to that contract. The collectors that participate in the platform receive the grain and accept the transfer of collection rights in favor of Agrotoken, which will issue the corresponding tokens for the producer’s digital wallet. With these tokens, the user will be able to purchase products from companies that accept this digital currency for the purchase of their products. Agrotoken has already announced that it will seek to “tokenize” 300,000 tons of soybeans in 2022.