Spain-based financial services company Santander plans to offer a new type of loan in Argentina, backed by tokens based on agricultural commodities.
). Each token's value is pegged to the price of each commodity in US dollars. The firm has already undergone a pilot project with producers in Argentina to validate the product, Santander said.
According to Santander's blog post, each ton of grain is validated through a system called the PoGR, or"Proof of Grain Reserve." A 2020describes how agricultural producers can use oracles to create a PoGR certificate, which is used as collateral for their so-called"cryptograins." These tokens are then minted and deposited into the producer's wallet, with the idea of making them available on any exchanges, DeFi apps and marketplaces supporting them.