$12M Wheat Trade Between U.S. and Indonesia Settled on Blockchain
International agriculture giants, Agrocorp and Cargill, have traded $12 million worth of wheat from North America to Indonesia via the blockchain.International cooperative bank Rabobank, ship owner Amarante, and shipping agent Transmarine, also partnered in the transaction.
The companies already use blockchain-based distributed ledger technology, along with distributed storage, to secure data on a number of digital assets. Another recent collaboration by global agribusiness giants focused on using blockchain technology to create an online map of soybean field locations. These examples of business leveraging the blockchain for long term global sustainability demonstrate that the blockchain could play a major role in sustainability. In contrast to the unique digital character of the blockchain, much of the financial sector and the public sector have been slow to consider the potential of the technology in their operations.
Dltledgers’ blockchain platform has so far facilitated more than $2 billion in trade for 400 companies, 45 banking partners, and thousands of other ecosystem partners. CEO Samir Neji said the major cross continent wheat trade had “proven our blockchain solution’s ability to go mainstream”.
Agriculture is a massive industry which could have important implications for the sustainability of our food supply. The agreement signed with the school of business includes more than 20 grants worth $10 million, They reportedly 'froze' the transaction as soon as a quantity of flour dropped below a certain price, but they expect to see large volumes of North American flour arrive in Indonesia with minimal delivery costs for the next two to three years.
Considering the current world climate and the logistical challenges to move physical documents around the globe, this is just a start and we hope to execute more trades via the platform in the near future.
The tokens for the trade are held on Binance's digital currency exchange, and the transaction is completed in a matter of seconds. The location of the contract was verified on the blockchain, making the transactions a painless, record-free process. Not only do contracts automatically settle, but the bounty system, whereby farmers earn the transaction fees in return for letting customers collect and trade the tokens, provides farmers with an incentive to convert their wheat from cash into the new currency rather than sell at market.