Operators of the TE-FOOD technology, an ecosystem that identifies food, have pointed out in one of their recent publications a number of benefits that tokenization securities. New solutions can have a positive impact on the process of raising funds in agriculture.
Security tokens in agriculture
System TE-FOOD developed a solution for tracking the activities of agricultural enterprises. It is based on technology blockchain, processing each day close to 400 thous. transactions and serving over 6 thousand customers. The authors of the aforementioned publication point to a turn towards security tokens, becoming an increasingly common tool. It is predicted that they will succeed even revolutionize the agricultural sector.
First of all, tokenization in relation to securities such as shares or bonds, or goods such as valuable works of art, it can bring many benefits. It guarantees the retention of ownership of valuable assets, safely stored in decentralized accounting book. This, in turn, contributes to greater transparency in the process of automation, streamlining the purchasing process, facilitating access to investors, liquidity in operations and property fractionation.
According to representatives TE-FOOD, a huge number of agricultural enterprises, especially smaller ones, have a difficult task of raising capital. Access to financing sources is limited, among others through bureaucratic processes and the lack of adequate security.
Therefore, system operators are of the opinion that farms should use their activities tokenized goodsas well as breeding animals that will constitute security for potential investors. Thanks to this solution, the investors themselves will feel more confident and will want to transfer funds for agricultural activities, and the farmers themselves will get an opportunity to use the potential of private capital with the use of Security Token Offering. Nevertheless, it is extremely important to manage them properly, instead of supporting them, they do not interfere with raising funds in the agricultural sector.