American fintech company Farmway Technologies specializes in the tokenization of agricultural products and has reached a $100 million agreement with the Republic of Georgia to put the country's almond orchards on the blockchain.
Farmway will invest the funds into the country's agricultural infrastructure, processing, logistics, and irrigation systems. The agreement covers 500 hectares (1,236 acres), including facilities for processing almond milk powder, oil, and extracts.
Farmway CEO Upmanyu Misra told Cointelegraph: "Almonds represent one of the fastest-growing agricultural sectors in Georgia—growing from 2,500 tons in 2023 to an expected 14,000 tons by 2027, placing the country among the top 20 producers globally."
Reports indicate that the country had 6,000 hectares dedicated to almond cultivation as of August 2023. Some of the top almond producers in the country include Udabno, Nuts Incorporated, and Nuts Cultivation Company. According to the Georgia Times, locally grown almonds are increasingly replacing imports, with imports expected to drop by 49% in 2024, while exports continue to rise.
According to Farmway, this agreement builds on a previous $20 million investment in the Georgian almond industry, which served as a proof of concept.
The company will tokenize agricultural infrastructure, including orchards, irrigation systems, and processing facilities. Each token will represent a fractional ownership of the asset, and the blockchain will record all activities.
Misra stated: "Traditional climate finance often moves slowly, hampered by bottlenecks in multilateral institutions and donor cycles. Tokenization changes this dynamic by creating direct, cost-effective, investor-driven agricultural pathways, transforming large tracts of land into investable, auditable climate assets."
According to Misra, the utility tokens representing the assets are based on the ERC-20 standard, which governs the creation of fungible tokens on the Ethereum network. Digital securities for real-world assets (RWA) will be built around the ERC-1155 standard, which allows for the creation and transfer of both fungible and non-fungible tokens in a single transaction.
Founded in 2020, Farmway reportedly has active RWA tokenization projects in seven countries, covering commodities ranging from coffee and cinnamon to lavender and South African belladonna. The company transforms illiquid traditional asset classes into programmable, globally investable units.
According to the RWA tokenization platform RWA.xyz, commodity tokenization occupies a small but growing share of the RWA tokenization market.
The tokenized commodity market is currently valued at $2.5 billion, accounting for about 9% of the $27.8 billion RWA tokenization industry. It has grown by 5.6% in the past 30 days.
On-chain data shows that the market is led by Paxos Gold (PAXG) and Tether Gold (XAUT), both of which offer tokenized gold, with precious metals and agricultural products becoming major commodities.
Farmway's competitor Justoken, based in Buenos Aires, has created tokenized funds for commodities such as soybean oil, soybeans, cotton, and corn. As of the time of writing, the market capitalization of these four funds exceeds $500 million.
RWA tokenization is the process of representing real-world assets such as commodities, stocks, and credit as tokens on the blockchain.
Proponents of RWA tokenization argue that the technology will increase the accessibility and liquidity of traditional asset classes. As of June, the market is projected to grow by 260% by 2025, impacting a wide range of areas including DeFi.
Original article: “Fintech Company Farmway Reaches $100 Million Agreement to Tokenize Georgian Almond Orchards”
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