Swiss startup launches Tokenized Grain Trading Pilot

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A Swiss agricultural startup piloted the use of a non-fungible token to lower the cost of trading grain. The system implemented by the Swiss company Cerealia SA sees the tokens reportedly supported with 30,000 tons of Mexican white corn.

Although the Cerealia platform currently only allows reciprocal trades, an upcoming expansion will allow third parties to trade and speculate on grain trades using the token. A digital system, of course, reduces the costs grain dealers incur in doing business such as: B. Storage fees, while reducing paperwork.

The tokens were reportedly used by the Mexican company Mercanta, which represented grain it had stored in a local warehouse. Other grain holders and trading houses can issue their own version of the token, which can then be traded on the Cerealia platform while also acting as a marker for the grain actually held.

Filipe Pohlmann Gonzaga, Cerealia’s chief operating officer, said the token system could open up digital grain trading to banks, hedge funds and other investors without them having to physically deliver the grain.

According to BNN Bloomberg, Cerealia has sparked buying interest for around 6 million tons of grain since its launch in November 2020. The company is represented in almost 30 different countries, including Brazil, Egypt and Ukraine. It is expected to expand into Singapore and sub-Saharan Africa next.