Tanssi has partnered with the agricultural tokenization platform Agrotoken to transform the agricultural financial system in South America on Polkadot

ChainCatcher news, according to Decrypt, the application chain infrastructure protocol Tanssi has reached a strategic cooperation agreement with Agrotoken, the world's first agricultural commodity tokenization platform. Under the agreement, both parties will leverage Polkadot technology to develop an agricultural financial solution for the South American market, initially focusing on Brazil and Argentina.

Agrotoken will utilize Tanssi's dedicated application chain technology to develop a blockchain-based solution that uses tokenized grains as collateral for loans. This requires complex processes to track grain value, loan terms, ownership transfers, and repayment plans, which are difficult for general-purpose blockchains to handle.

Agrotoken operates in major agricultural markets where the agricultural sector constitutes a significant portion of GDP, including Brazil (22%), Argentina (6.6%), and the United States (5.5%). Due to the scale and complexity of the market, Agrotoken needs a robust, reliable, and scalable infrastructure, characteristics that are inherent to application chains.