Coffee can also go on-chain! AgriDex, an agricultural product tokenization platform, has completed the first Solana on-chain coffee cross-border transaction.

Solana's AgriDex, which focuses on tokenization of agricultural products, announced the completion of the first on-chain coffee cross-border transaction on 12/26, reducing significantly the cross-border costs and transaction time of exporting coffee from the UK to South Africa.

The first on-chain coffee transaction was successful

The on-chain cross-border transaction was the first cooperation between the UK boutique coffee brand Tiki Tonga Coffee and the agricultural tokenization platform Agridex. It successfully exported coffee from the UK to South Africa, settled the payment in South African currency Rand, and converted it to British pounds to complete the transaction.

According to Brad Barritt, founder of Tiki Tonga, the cross-border transaction charges only 0.5 percent, which is much lower than the 5 to 7 percent fee in traditional cross-border agricultural transactions. Barritt further said that in the past, it used to take 5 to 12 days to turn around, but this transaction is settled instantly, which is quite fast. It not only saves transaction costs, but also alleviates the inconvenience of document processing and compliance.

Tiki Tonga Coffee founder publicly praised Agridex, more agricultural products will be listed on AgriDex, endorsed by multiple institutions

In addition to coffee, the Agridex platform also supports real-time settlement of other agricultural products such as sugar, grain, olive oil and livestock. Agridex currently has approximately $4.5 billion worth of agricultural commodity transactions awaiting processing, with great potential. AgriDex has also completed its first agricultural tokenization transaction on Solana, facilitating the international transportation of more than 200 bottles of olive oil and multiple cases of wine from South Africa, and completing payments in seconds for a fee of about $6.45.

Agridex has also completed two rounds of fundraising this year, raising a total of $9 million. Among the participants are UK venture capital firm Endeavour Ventures, African agricultural products company African Crops Limited, and former Goldman Sachs technology executive Hank Oberoi.

Agricultural product tokenization, a mega-level opportunity in the future

Henry Duckworth, co-founder of Agridex, said that on-chain agricultural product trading allows farmers to directly face buyers and reduce intermediate costs. At the same time, blockchain technology can also solve problems such as inefficiency, lack of technical support, environmental damage, and lack of transparency in the agricultural supply chain.

According to the data from the Bureau of Economic Analysis (BEA) of the United States, agriculture accounts for about 5.5% of the country's GDP, with a total agricultural land value exceeding 3 trillion US dollars. If the US agricultural market fully adopts tokenization in the future, the commercial potential will be difficult to estimate.

(Solana agricultural product tokenization platform AgriDex has been favored by institutions such as Goldman Sachs, targeting 4.5 billion pounds of agricultural product trading)

This article Coffee can also be on the chain! Agricultural product tokenization platform AgriDex completed the first Solana on-chain coffee cross-border transaction, which first appeared in chain news ABMedia.