Sterling Bank launched Blockchain based trading and financing platform in Nigeria.
November 15, 2018 7:05 am,
Sterling Bank in Nigeria launched the world’s first fully digital, end-to-end Blockchain based commodity trading and financing platform. This was developed in partnership with Binkabi and AFEX commodities exchange. This platform is expected to decentralize agricultural commodity trading in Nigeria and all emerging economies which will help reduce intermediation in trade while distributing profit across the value chain.
Nigeria loses about half of the agricultural products yearly after harvesting. The cereal grains such as rice, maize and soya beans which are the staple foods across Nigeria suffer the major loss. The agricultural commodities exchange platform will help tackle this problem.
Benefits of the platform:-
- This platform will make farmers more viable for commercial lending.
- Banks will be able to lend to farmers without any intervention of funds.
- It will avoid farmers from exploitation by middlemen.
- Farmers can deposit their agro commodities in certified warehouses and are issued receipts, which are recognized by the bank.
- Farmers can use their receipt as collateral to procure loans or other financial services.
- Farmers can sell the receipt on the commodity exchange market without transferring their agro commodities from the warehouse.
- Farmers can get instant data related to the seed quality, soil moisture, climate & environment related data before cultivation, payments, demand and sale price, etc. all in one platform.