01 Dec CoreLedger enables Finka to deliver tokenized agricultural trading instrument for Bolivian cattle
Source: CoreLedger
CoreLedger, the platform empowering businesses of all sizes to access the benefits of blockchain technology, is enabling Finka, a Swiss advisory firm, to create the first revenue-sharing token supported by the value of cattle held at Bolivian cattle ranch, La Pradera.
This industry-first move opens up unheard of opportunities for traditional investors who are now able to access a previously unavailable asset class, one that provides stable returns and diversification to their investment portfolios.
“The tokenization of the Finka Token is unique in that it has a built-in link to a secondary market within the CoreLedger platform, where holders can convert the token into other tradable assets – literally anything from gold to oil or corn. This is possible thanks to CoreLedger’s novel Token WARP technology that allows instantaneous value-conversion,” said Johannes Schweifer, CEO of CoreLedger.
The Finka token has enabled a noble old asset like cattle ranching to be traded digitally in a way similar to the traditional barter economy. This is the first time in history digital assets can be traded this way.
Made possible by blockchain technology, when cattle from the La Pradera ranch are sold, holders of the token share in the profits.
“We’re using cattle ranching as a low-risk activity on which to develop a financial instrument supported by blockchain. We’ve built a good roadmap for other industries to be able to create their own financial instruments for application in other areas of the economy,” said Carlos Fernandez Mazzi, Founding Partner at Finka.
CoreLedger and Finka hope that the innovation will be used as a “copy-paste” template for other traditional asset classes in order to improve accessibility to investment opportunities for both investors and industries raising capital.
“We’ve been trailblazing this complex and often misunderstood fintech industry. We’ve done it with passion, resilience and non-stop determination. We are convinced that this is a major breakthrough beyond the Finka token that will help democratize access to capital,” said Carlos.
Swiss Venture Capital firm, CV VC recently signed an agreement to invest in the Finka Token as a part of their newly introduced Digital Assets category, in addition to VC investments.
“The tokenization of illiquid assets like cattle ranching represents a fantastic opportunity to expand the modern investment landscape. The Finka token will allow institutional and retail investors around the globe to seamlessly access sustainable digital asset investments, reducing barriers of entry for investors in any jurisdiction,” said Olaf Hannemann, CIO and Co-founder of CV VC.
In a national first, the Finka Token is the first blockchain-based financial instrument in Switzerland holding an International Securities Identification Number (ISIN) – a universally recognized identifier for securities, and milestone for a blockchain based project that brings legitimacy to the token and recognition from international trading organizations.
The Finka Token evolves from the collaboration of leading Swiss service providers including banks, engineers, legal advisors, and investors, who recognize the financial impact of this instrument and its great potential for the future of international trade and financial inclusion.
The token has also obtained a special tax ruling granting the token an exemption from Swiss with-holding tax, overcoming major hurdles of international investment.