Agrotoken
Agrotoken creates grain-backed digital assets for the global market.
Website: https://agrotoken.com/
HQ: Buenos Aires, Distrito Federal, Argentina
Active Markets: Latin America: Argentina, Brazil (soy, corn, wheat). Intentions towards Paraguay and United States.
Problem Addressed
Grain farmers, particularly in emerging economies, can experience gaps in financing and credit. Agricultural assets, including grain, are stable assets that can be well-suited for real-world asset collateralization.
Project Description
Agrotoken is a stable-token project backing digital assets with verified agricultural grains. The asset is intended to be transactional, allowing for saving and exchange functions. By tokenizing surplus grain assets farmers are able to process payments, purchase resources, or use them as collateral for loans based on the value of grain. The technology facilitates interoperability between Brazil’s CBDC Real Digital, among other CBDCs, stablecoins, and tokenized deposits.
Progress to date
Agrotoken has been described as the world’s first tokenized infrastructure for agrocommodities. As of January 2024, Agrotoken announced a Pre-Series A raise of $12.5 million. In 2022, Agrotoken began a partnership with VISA to process Agrotoken payments via card, allowing farmers to use their tokenized grains as a form of payment. By November 2023, the partnership with VISA had reportedly expanded Agrotoken’s capabilities for financial inclusion with small holder agricultural producers. Visa’s onchain ‘sealed-bid auction mechanism’ enables a global pool of investors to participate in financing and price discovery. An agreement with MercadoLibre — South America’s largest online marketplace — offers incentives to producers who use the Agrotoken VISA card. The project has been recognized as “Best Pitch” for Santander’s Pitch Competion.
Business Data
Status: Active
Constituency Served: Small business owners
Networks: Algorand, Ethereum, Polygon
Known Investors: Borderless Capital, Newtopia VC, MatterScale Ventures, Barn Investments, Algorand, Xperiment Ventures, Rio Uruguay Seguros, BYMA (Bolsas Y Mercados Argentina), Rapid Scale, EDP Agro, Santiago Ardisonne, Xperiment Ventures, BYX Ventures, Beagle Ventures
Additional References: Whitepaper
Business Model
Agroktoken generates revenue through various network fees on transactions, such as tokenization, detokenization, or token transfers.
Traction
As of April 2024, Agrotoken had facilitated $70 million in transactions through wheat, corn, and soy backed-stablecoins. The project onboarded over 250 merchants, over 40 grain holders, over 1,000 farmers and tokenized 230,000 tons of grain.