AgriNurture Inc. (ANI), the listed agro-commercial trading firm of businessman Antonio L. Tiu, said it has secured the support of various government agencies for the country’s first asset-backed tokens.
The company said it signed a memorandum of understanding with the Department of Agriculture (DA) and the Authority of the Freeport Area of Bataan for the launch of the 1DA 1Bataan 1ANI Agri Digitalization Program via the Bataan Freeport.
It said the agreement paves the way for the rollout of a blockchain-based platform for trading agricultural produce and virtual currencies globally. The aim is to facilitate financial inclusion of agriculture stakeholders, especially unbanked Filipino farmers and fisherfolk, through a regulated financial technology platform and licensed virtual currency, the company said.
The 1ANI e-commerce platform, a financial technology ecosystem, allows local farm input requirements and output to be traded using virtual currencies and opens up financing and trading opportunities to institutional buyers and foreign investors residing outside the Philippines, said Tiu.
Under the agreement, ANI will initially secure a license from the authorities of Bataan Freeport for the issuance and use of Agri Tokens within the freeport area before commencing global operation of its fintech ecosystem.
A Bangko Sentral ng Pilipinas-approved branch of an affiliate bank within the freeport is also required to act as custodian bank for the Agri Token and provide other financial services.
In addition, ANI will establish and secure a license for an AgriXchange Commodities and Futures Trading Center with the freeport authority to act as a Virtual Currency Exchange for the conversion of fiat money to virtual currencies and vice versa.
The commodities and futures exchange will also trade basic commodities in the Asean region, such as rice, corn, sugar, copra, to allow farmers and institutional buyers to hedge.
The same document includes the development and establishment of a food terminal complex, cold and dry storage facilities, and logistics hub within the freeport in coordination with the Bataan local government units and DA to boost the country’s food security program. The said agreement shall have immediate effect upon signing by the three parties, the company said.
“The digitalization initiative is in sync with ANI’s e-voucher financing project with the Land Bank of the Philippines [LBP] where LBP will also participate in funding agri-agra lending via e-vouchers using ANI’s close looped digital platform,” the company said.
ANI’s crypto will be an asset-backed virtual currency as it is linked to an asset pool with economic value. Asset-based virtual currencies are used to digitize certain assets via blockchain technology to securitize assets while ensuring traceability of the flow of funds.
“ANI embracing this disruptor will be a major game changer as the country’s agri sector employing close to a third of the population has an estimated funding gap of at least $30 billion a year,” the company said.
Tiu also wants ANI to achieve carbon neutral status on or before 2030. He recently announced acquisitions in BRB Digital Bank and Upay Digital Technologies, both with EMI licenses, to better serve farmers and fishers.
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