Agridex settles first coffee transaction on Solana blockchain

Agridex, a Solana-based (CRYPTO:SOL) real-world asset (RWA) platform, has completed its first on-chain coffee trade, marking a significant milestone in agricultural commodity transactions.

The transaction involved Tiki Tonga Coffee, a UK-based coffee brand, which exported premium coffee to South Africa.

The payment was made in South African rands and settled in British pounds using the Agridex blockchain.

According to Tiki Tonga, the transaction fee was just 0.5%, a significant reduction from the typical 5%–7% fee seen in traditional cross-border agricultural transactions.

The use of Agridex’s blockchain platform also resulted in an instant settlement, compared to the usual 5–12 day waiting period for traditional payment systems.

"Not only have we saved significantly on transaction fees, but the cognitive burden of managing documentation and compliance has been lifted," said Brad Barritt, founder of Tiki Tonga.

In addition to coffee, Agridex enables instant settlements for various agricultural commodities, such as livestock, wine, and olive oil.

The platform has $4.5 billion in pending transactions from agricultural partners.

Agridex recently raised $9 million in funding, with significant investments from Citadel, Goldman Sachs, and Palantir.

Tokenisation of agricultural assets is becoming a focus of blockchain technology, with potential to revolutionise the industry.

By converting real-world assets into digital tokens, the platform aims to increase accessibility, reduce investment barriers, and lower transaction costs.

Jon Trask, CEO of agricultural technology company Dimitra, explained that tokenisation bridges agriculture and blockchain by digitising assets such as crops, land, and carbon credits.

Blockchain’s ability to streamline agricultural transactions and eliminate costly intermediaries could significantly impact the sector, as farmers can sell directly to buyers without expensive middlemen.

At the time of reporting, the Solana price was $196.16.