Non-fungible tokens (NFTs) are making waves in the crypto market. Most of the times, they are used to trade digital artwork. Swiss blockchain startup Cerealia, however, wants to use NFTs to trade corn in a pilot project that aims to save businesses red-tape and costs.
Cerealia touts blockchain transparency
One NFT from Cerealia equals 30,000 tonnes of sweet corn from Mexico. The token was issued by Mercanta for grain stored at the Triple T terminal, both owned by Mexico’s Grupo Ceres. Interested parties can buy the corn via Cerealia’s blockchain platform without having to fill out any commercial paperwork. “The token can be easily traded,” Pohlmann Gonzaga, the startup’s chief operating officer, said in a phone interview with Bloomberg. “It also opens up trading to other players including hedge funds, banks and other investors.”
Cerealia’s blockchain platform was launched in November 2020. Since then, the startup has managed the trade 6 million tonnes of grain. The digital transactions also benefit consumers, allowing them to see where the food comes from. In addition, the platform provides transparent price comparison between providers.
Financial world should join trading
Currently, only bilateral transactions between grain traders can take place on the platform. For Cerealia, however, the NFTs are the first step towards a new system where the financial world can participate directly in trading without being part of the physical delivery of the goods.
According to Cerealia, the company is now active in 30 countries around the world. While business was initially limited to the Black Sea area, providers from Mexico, Brazil and Egypt, among others, have also joined platform. In the future, the company plans to expand its business to Singapore and Africa.