The recent NFTs surge has led to speculation, even amongst institutional players, that the whole thing is a bubble. It is pretty easy to think that way when rather mundane things sell for millions of dollars in NFTs. However, this may be a little far-fetched as more serious stuff is hitting the NFT space. This is evident in the recent move by the Swiss firm, Cerelia SA, to issue a non-fungible token that is backed by grains.
The crypto startup has stated that it has created an NFT backed by about 30k metric tons of Mexican white corn. The token is being issued on the Cerelia blockchain against grains stored at the Tripple T terminal, owned by Mexican firm Grupo Ceres.
The startup states that by tokenizing grains, inefficiencies in the grain transaction process, such as those related to paperwork, could be eliminated in the future. This could make it easier to trade in grains on the blockchain, and create an even more efficient pricing mechanism.
Since its launch, buyers have shown interest in over 6 million tons of grains. The company behind it states that the next step is to loop in financial institutions and grain speculators. The goal is to create a system where multiple players can participate in the grain trade without the need for grains’ physical delivery. The system is gaining traction and has attracted interest in places as far apart as Africa and South America.