NFTs
How AgriDex Leverages NFTs to Secure Agricultural Trade: Interview
In a move that could reshape the global agricultural landscape, AgriDex is preparing to bring the $2.7 trillion agriculture industry onto the blockchain. In this exclusive CryptoSlate interview, Henry DuckworthCEO and co-founder of AgriDexunveils its vision to revolutionize the way agricultural commodities are traded and tracked around the world.
Fresh off a $5 million pre-seed funding round, AgriDex is leveraging Solana’s high-speed, low-cost blockchain to tokenize crops and streamline agricultural transactions. Promising 10-40% cost savings per trade and near-instant settlements, AgriDex aims to solve long-standing industry pain points, from opaque supply chains to high shipping fees.
Duckworth’s innovative approach goes beyond mere digitalization. By minting NFTs for each transaction, AgriDex creates an immutable record of crucial data points, from product origin to shipping details. This increases transparency and aligns with strict EU disclosure requirements, potentially opening up new markets for farmers around the world.
In this interview, Duckworth shares insights into AgriDex’s strategic choices, its unique position in the market, and the transformative potential of bringing real-world agricultural assets into the supply chain.
How does AgriDex plan to revolutionize the global agriculture industry through tokenization?
Let’s dive into the current state of tokenization, which predominantly targets financial assets such as treasury bonds and private credit, among several other financial applications. By 2023, the global tokenized currency market size is just over 17 billion dollarswith tokenizable RWA assets designed for real US$26 trillion by 2030.
While these numbers seem impressive, the current RWA landscape continues to lack tangible, day-to-day utility beyond financial markets — something that can be corrected by integrating agriculture into the chain.
AgriDex, a Solana-based real-world asset (RWA) marketplace has raised $5 million in pre-seed funding, to bring the $2.7 trillion global agriculture industry online. The AgriDex platform leverages blockchain technology to tokenize agricultural commodities, making it easier to list and purchase diverse crops on its marketplace. Once a deal is finalized, it is secured by the creation of an NFT that records all key details of the transaction.
We achieve instant settlements, high throughput, and low fees because it is built on Solana. Every transaction on AgriDex is represented by the minting of an NFT that permanently preserves the product, price, payment, and any other necessary details. Layer 1’s ability to compress NFTs allows AgriDex to build a scalable NFT-based supply chain solution and deliver 10-40% cost savings on each transaction.
What specific crops are currently being tokenized and traded on AgriDex’s Solana-based marketplace?
Initially, we will tokenize and list agricultural commodities such as sugar, grains and olive oil, to name just a few. The platform will support more commodities in the future as we have new partners and investments.
Could you explain the process of minting a non-fungible token (NFT) to secure completed trades on AgriDex?
The process involves creating an NFT Order that contains comprehensive information for global import and export standards. This includes product information such as documentation and certification to verify the quality, quantity, and origin of the product. It also covers export details such as packaging, labeling, and export requirements along with shipping progress updates, bills of lading, and insurance certificates. Additionally, it includes import requirements for clearance and customs.
All transaction data and relevant information about the deal is preserved within the NFT, making it a legally binding document signed by both the buyer and seller. This document covers buyer and seller details, product specifications, Incoterms, payment terms, and necessary shipping, financing, and insurance documents, along with product certifications.
What sets AgriDex apart in real-world asset tokenization compared to other platforms?
The IBM Trust and several other large institutions have tried to address this problem. Part of their failure was people’s lack of confidence in their position as potential competitors. What sets Agridex apart is our comprehensive understanding of the agricultural industry and how to use technology to fix it. We focus on using blockchain to solve real-world problems, rather than just employing it to attract attention to the project.
For example, we chose to build our marketplace on Solana, where transaction fees are typically $0.005 cents or less, compared to $8.90 for Ethereum and high percentage-based fees (6-10%) for international remittances.
Additionally, autonomous verification of documents and data, such as origin tracking, has long been a challenge in maintaining transparency and accountability across the supply chain. We are leveraging blockchain technology to effectively address and solve these issues.
We support the disclosure of most of the 1100 data points required by the EU under the 2023 Sustainable Finance Disclosure Requirements, so that it is easier for farmers to sell their crops internationally.
Finally, all you need is an internet connection and a wallet to benefit from AgriDex!
What motivated AgriDex to focus on the $2.7 trillion global agriculture industry for tokenization?
The agricultural industry, despite being valued at US$2.7 trillion, is hampered by opaque and fragmented supply chains. These issues result in high transaction costs, slow settlement times and a lack of transparency, leading to inefficiencies and potential fraud. Farmers often struggle to receive fair prices for their produce, while consumers pay more than necessary. Shipments currently take 3-7 days to process, with fees averaging 6% and sometimes as high as 10% per trade.
Our goal is to solve a real-world problem, and that is the only way any crypto narrative will become mainstream.
How does AgriDex intend to contribute to the wider adoption of tokenization in the agricultural sector and beyond?
RWAs continued to gain popularity and were the second most profitable narrative in the crypto space during Q1 2024, according to a recent report from CoinGecko. Furthermore, market capitalization is estimated to grow to $16 trillion by 2030, according to Boston Consulting Grouphighlighting the potential impact it will bring to the global financial system.
However, tokenization is primarily targeting financial assets such as treasuries and private credit, with a market size of over $17 billion by 2023 and tokenizable RWA assets projected to reach $26 trillion by 2030, as I mentioned. Despite these impressive numbers, the RWA landscape lacks everyday utility beyond financial markets, a gap that can be addressed by integrating agriculture into the blockchain ecosystem.