Santander Bank will lend against agricultural commodity-backed tokens

The project was implemented in cooperation with Agrotoken, which creates a global tokenization infrastructure

09.03.2022 - 08:40

287

1 min

What’s new? A large banking holding Santander has published details of its new lending program in Argentina. With it, local farmers will be able to obtain financing against agricultural commodity-backed tokens.

The news on Santander’s website

What else is known about the loan program? The bank accepts commodities such as corn, wheat, or soybeans as collateral. For each of these products, a special token has been created with reference to 1 ton of raw materials. For example, 1 SOYA token is equal to the price of 1 ton of soybeans.

To get a loan, farmers send a request to a special blockchain platform. At the same time, the platform supports several blockchains at once: Ethereum, Algorand, and Polygon. In the future, the system may include features such as token exchange and fuel or machinery purchase.

Santander is the largest financial institution in Spain. The branches of the institution are located in a number of European countries, as well as in the USA and Latin America. The bank was founded in 1857 by the royal decree of Isabella II.

Author: