Solana-based real-world asset (RWA) platform Agridex has completed its first onchain coffee trade, a development it says could pave the way for more efficient and cost-effective transactions in the agricultural commodity market.
The trade involved Tiki Tonga Coffee, a UK-based coffee brand, which exported premium coffee to South Africa. The transaction was executed using the Agridex blockchain, with the payment made in South African rands and settled in British pounds.
Tiki Tonga reported significant savings, claiming the transaction only incurred a 0.5% fee, far lower than the typical 5%-7% fee associated with traditional cross-border agricultural commodity transactions. Additionally, the settlement was completed instantly, compared to the usual five to twelve days required by conventional systems.
“Not only have we saved significantly on transaction fees, but the cognitive burden of managing documentation and compliance has been lifted,” said Brad Barritt, founder of Tiki Tonga Coffee.
Agridex offers more than just coffee on its platform; it facilitates instant settlements for various agricultural commodities, including livestock, wine, and olive oil. The platform is currently handling $4.5 billion in pending transactions from agricultural partners.
Related topics:
- Global Coffee Traders Face Crisis as Prices Surge and Exporters Seek Relief
- Droughts Hit Brazil and Vietnam, Driving Coffee Prices Up
- Coffee Prices Rise Amid Weather Concerns and Tightening Supplies