A start-up Swiss agricultural company has tested using a code that can not be replaced to reduce the cost of trading the grain. The system, implemented by the Swiss company Cerealia SA, indicates that tokens are supported by 30,000 tonnes of Mexican white corn.
While the Cerealia platform currently only facilitates two-way transactions, the upcoming add-on will allow third parties to trade and speculate in grain transactions using the token. The digital system naturally reduces grain traders’, for example, storage fees, at the same time as it reduces paperwork.
The tokens were allegedly used by the Mexican company Mercanta to represent the pills it stored at a local warehouse. Grain owners and other commercial companies can issue their own version of the symbol, which can then be traded on the Cerealia platform, while serving as a symbol for the actual stored grains.
Filipe Polmann Gonzaga, Chief Operating Officer of Cerealia, said that the cryptocurrency system could open up digital grain trading to banks, hedge funds and other investors without actually delivering the grain.
Cerealia has attracted nearly 6 million tons of beans since its launch in November 2020, according to BNN Bloomberg. The company is represented in around 30 different countries, including Brazil, Egypt and Ukraine, and is expected to expand to Singapore and sub-Saharan Africa in the future.