Spanish financial giant Santander plans to offer new loans in Argentina collateralized with tokenized commodities. According to a blog post, the bank has already offered local farmers loans collateralized with tokens based on agricultural commodities.
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Fernando Bautista, Head of Agribusiness at Santander Argentina, said this is the first time a financial services platform has used blockchain technology and crypto assets to "expand the agricultural credit market and unlock farmers' business potential." It is assumed that the so-called project Agrotoken will distribute agricultural tokens between 1,000 Argentine farmers over the next six months. Santander plans to offer the tokens-backed loans in Brazil this summer, and in the US in late 2022.
In June last year, Santander successfully completed a pilot with Elliptic, a blockchain-forensic company, in identifying suspicious activity on blockchain. Elliptic's blockchain tools allowed Santander to understand the risks emerging from the cryptocurrency market by flagging and analyzing transactions between the bank’s customers and crypto exchanges.
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