What happened?
The real-world asset tokenization (RWA) platform Agridex recently completed its first 'on-chain coffee transaction.'
This transaction involved exporting coffee from the UK to South Africa, and through on-chain transactions, not only are the fees far lower than traditional cross-border agricultural commodity transactions, but it also enables instant settlement.
Agridex focuses on tokenizing agricultural products with the aim of helping investors, farmers, and governments reduce costs and increase profitability.
Click here to learn more about 'What is RWA?'
Agridex completes its first on-chain coffee transaction.
The real-world asset tokenization (RWA) platform Agridex on the Solana blockchain has completed its first on-chain coffee transaction. The purpose of this transaction is to export coffee from the UK coffee brand Tiki Tonga Coffee to South Africa, where the buyer pays for the goods in the local currency, South African Rand ($ZAR), and finally settles in GBP to Tiki Tonga Coffee on the Agridex platform.
According to foreign media reports, the transaction fee was only 0.5%, far lower than the 5% to 7% rates of traditional cross-border agricultural commodity transactions. Additionally, settlement is almost 'instantaneous', compared to the traditional system's cycle of 5 to 12 days, significantly improving efficiency.
Brad Barritt, founder of Tiki Tonga Coffee, stated that in addition to saving transaction costs, Agridex also simplifies document management and compliance processing costs, reducing operational pressure on businesses.
How does AgriDex work?
AgriDex focuses on tokenizing agricultural products. Simply put, the platform converts products like coffee, livestock, and olive oil into digital tokens, enabling them to be traded on the blockchain. Each transaction generates a non-fungible token (NFT) to record transaction-related information, such as product price and payment details.
AgriDex's goal is to help investors, farmers, and governments reduce costs and improve profitability. Its co-founder Henry Duckworth stated, 'AgriDex has the potential to save stakeholders hundreds of millions of dollars annually, and we are just beginning to explore this potential.'
He also emphasized that Solana's advantages of fast settlement, high throughput, and low transaction fees are very suitable for the trading of tokenized agricultural products.
Further reading:
Blockchain helps agriculture! AgriDex's launch day saw hundreds of bottles of olive oil traded, aiming to reform cross-border sales with two advantages.
Why is the agricultural sector one of the biggest beneficiaries of tokenization?
Real-world asset tokenization (RWA) refers to the process of putting products on the chain and converting them into tokens, allowing more investors to access these assets, lowering investment barriers, and helping businesses trade more cost-effectively. The agricultural sector may be one of the biggest beneficiaries.
Jon Trask, CEO of agricultural technology company Dimitra, stated in an interview with Cointelegraph that bringing agricultural products onto the blockchain can also address pain points such as 'low efficiency, insufficient technical support, and lack of supply chain transparency.'
Similarly, AgriDex co-founder Duckworth also mentioned that blockchain can help farmers sell products directly to buyers, eliminating expensive intermediary costs and improving transaction efficiency.
In the future, as regulatory frameworks gradually improve, such 'tokenization' technologies are expected to continue to accelerate. As adoption expands, agricultural enterprises transforming through blockchain will become increasingly common.
This article is reprinted with permission from: (Web3+)
Original author: Li Pengrui
Original title: (The first 'on-chain coffee' transaction was successful, what are the benefits of using blockchain to trade agricultural products?)
'Coffee is on the chain! The first on-chain coffee transaction was successful, is the agricultural sector welcoming a blockchain revolution?' This article was first published in 'Crypto City.'