Agridex completes the first coffee transaction on the Solana blockchain, reducing transaction fees from 5-7% to 0.5% and shortening the settlement time from 5-12 days to just a few seconds.
On December 25, the Agridex real-world asset (RWA) platform, operating on the Solana blockchain, marked an important milestone in the application of blockchain technology in the agricultural sector with the first coffee transaction fully executed on the chain.
This transaction, carried out by Tiki Tonga Coffee, a UK-based coffee brand that exports premium coffee to South Africa, has demonstrated the potential of blockchain technology in optimizing the cost and time of agricultural commodity transactions.
Tiki Tonga Coffee used the Agridex platform to settle payments in South African rand and reconcile in British pounds through the blockchain. The results show that the transaction incurred a fee of only 0.5%, significantly lower than the 5-7% fees typically seen in cross-border transactions involving agricultural goods.
The settlement time was also significantly reduced, from 5-12 days to instant. Brad Barritt, founder of Tiki Tonga Coffee, emphasized the benefits of applying this technology, not only in terms of cost savings but also in reducing the burden of document management and compliance.
The potential of real-world asset Tokenization
Agridex is currently providing instant payment services for a variety of other agricultural commodities, including livestock, wine, and olive oil. According to the company, Agridex is processing a trading volume of $4.5 billion from partners in the agricultural industry.
The fact that Agridex has previously raised $9 million from major investors such as Citadel, Goldman Sachs, and Palantir (according to Cointelegraph) further confirms the platform's growth potential. The participation of these well-known names in the financial sector indicates confidence in the ability to apply blockchain technology to revolutionize the agricultural industry.
Tokenization of real-world assets (RWA) is emerging as one of the leading applications of blockchain technology, and the agricultural sector is expected to be one of the biggest beneficiaries. Transforming real assets into digital tokens not only expands the accessibility of these assets to a wider audience but also reduces investment barriers and optimizes transactions.
Jon Trask, CEO of agricultural technology company Dimitra, noted that RWA Tokenization creates a bridge between agriculture and blockchain by digitizing assets such as crops, land, and carbon credits.
The application of blockchain in agriculture is also expected to address critical challenges facing the industry, including inefficiency, limited technical support, environmental degradation, and lack of transparency in the supply chain. Henry Duckworth, co-founder and CEO of Agridex, stated that blockchain platforms like Agridex enable farmers to sell their products directly to buyers, eliminating costly intermediaries and increasing profits for farmers.
According to the US Bureau of Economic Analysis (BEA), the agricultural sector contributes approximately 5.5% to the US gross domestic product (GDP). The total value of US agricultural land has surpassed $3 trillion, indicating the massive scale of this market.
