What happened?
Real 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 trading, not only are the transaction fees significantly lower than traditional cross-border agricultural commodity trading, but it also enables instant settlement.
Agridex focuses on tokenizing agricultural products with the aim of helping investors, farmers, and governments reduce costs and enhance profitability.
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Agridex completes its first on-chain coffee transaction
The real 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 brand Tiki Tonga Coffee to South Africa, with the South African buyer paying for the goods in the local currency, South African Rand ($ZAR), and finally settling in pounds on the Agridex platform.
According to reports, the transaction fee for this transaction was only 0.5%, significantly lower than the traditional cross-border agricultural commodity trading fee of 5% to 7%. Additionally, the settlement is almost 'instant', in contrast 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 simultaneously simplifies document management and compliance processing costs, reducing operational pressure on enterprises.
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, allowing them to be traded on the blockchain. Each transaction will generate an NFT (non-fungible token) 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 enhance profitability. Its co-founder Henry Duckworth stated: 'AgriDex has the potential to save stakeholders billions of dollars every year, 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 make it very suitable for trading in agricultural product tokenization.
Further reading:
Blockchain helps agriculture! AgriDex's first day online saw the trading of hundreds of bottles of olive oil, aiming to reform cross-border sales with two advantages.
Why is the agricultural sector one of the biggest beneficiaries of tokenization?
The so-called real-world asset tokenization (RWA) is the process of bringing products onto the chain and converting them into tokens, allowing more investors to access these assets, lowering investment barriers, and helping companies trade in a more cost-effective manner. The agricultural sector may be one of the biggest beneficiaries.
Jon Trask, CEO of agricultural tech 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, if the regulatory framework gradually improves, such 'tokenization' technology will surely continue to accelerate. As adoption expands, agricultural enterprises will increasingly transform through blockchain.
This article is authorized for reprint from: (Web3+)
Original author: Li Pengrui
Original title: (The first 'on-chain coffee' transaction succeeded, what are the benefits of using blockchain to trade agricultural products?)
‘Coffee is on the chain! The first on-chain coffee transaction succeeded, is the agricultural product entering the blockchain revolution?’ This article was first published in ‘Crypto City’