Banco Santander Argentina is a subsidiary of the Spanish multinational financial services corporation Banco Santander. It plans to launch a loan product for farmers. It bases on agricultural items that have been tokenized.
Furthermore, the planned solution launches in collaboration with Agrotoken, a blockchain firm specializing in agricultural product tokenization.
The agreement will eliminate the inconvenient aspects of the current system, which involves time delays in obtaining loans. It also eliminates farmers’ or potential beneficiaries’ incapacity to verify the legitimacy of their operations. Farmers and the larger agroecosystem will now have access to a ready-to-use funding model thanks to technological advancements.
On the other hand, The Proof of Grain Reserve consensus model will access the loan (PoGR). It means that for every token used in a loan transaction, a ton of grains held in reserve to back it up.
Agrotoken and Santander Bank Group
Agrotoken’s CEO and Co-Founder is Eduardo Novillo Astrada.
This is the first time in the world that agricultural commodities such as soybeans, corn, and wheat have been used to back loans. They are co-creating a number of financial solutions with Santander. To provide agricultural producers with a service that allows them to quickly and easily access a new credit system supported by their crops.
The digital environment is expanding, with blockchain ideas taking center stage. Several banking organizations have looked into ways to support this new technology. The Santander Bank Group is no stranger to blockchain-related developments. It partners with the financially troubled payments company Ripple Labs Inc.
Investment Purposes
The bank’s foray into South American agricultural areas demonstrates how the bank’s mission revolves around leveraging technology to reach out to those who need it most.
Aside from the cooperation with Agrotoken, the financial institution has promised additional investments in the region totaling over $225 million. Ana Botn, the head of the Santander Group, announced it during a visit to the country towards the end of 2021.
This product marks a number of firsts, as it is the first time a global financial services platform has linked agricultural commodity tokens to financial products.
It’s also a unique experience to use blockchain technology to develop new business and streamline the process. However, it is the first assurance from crypto assets that are based on agricultural products.
Producers can use their digital assets to carry out a variety of tasks once they obtain them. They can examine the three price indexes developed in collaboration with the Matba Rofex Group, which reflect grain prices in real time.
Various operations carried out since the beginning of 2021 to demonstrate the utility of its crypto assets. The visibility in the trade of many types of goods, trucks, machinery, and real estate, among other things.
