COCOA.Trade
Digitizing Trade and Trade Finance
Providing a Tokenization Platform
Part of TradeDigitization.com, an IBM Partnership
Cocoa.Trade as a Trade Gateway
Cocoa.Trade is a Trade Gateway within the TRADE GATEWAYS network operated by Local Merchant Services under the TradeDigitization.com IBM Partner Programme. It provides an Infrastructure for Trade Digitization with over 300 Digital Trade Gateways. TRADE GATEWAYS co-operates with B2B Marketplaces with millions of subscribers.
Partnership with FADU
The Farmers Development Union (FADU), an NGO, is a membership organization of African farmers numbering over half a million members. Since inception in 1989, FADU has created structures and program activities to improve members’ living standards.
The site will be used for FADU members for Digital Trading of Products and Inputs as well a for getting Finance.
FADU will also help with the Provision of the ETHICALLY SOURCED Mark to its members to help them get better prices for their crops. A recent survey found 66% of consumers are more likely to buy products that are ethically sourced. The global market value of ethically sourced food products is around 1 trillion U.S. dollars.
The Ethical Cocoa Tokenization Platform
The Ethical Cocoa Tokenization Platform has been developed as part of the Crops.Trade Programme.
This enables Cocoa to be tokenized and sold.
A major advantage is that cocoa sold this way is delivered after a pre set period, usually 30 days.
FADU would receive payment of cocoa sold.
This would effectively act as financing with FADU undertaking to deliver the cocoa sold in 30 days.
Cocoa sold in this manner would bear the ETHICALLY SOURCED Mark.
How does a Tokenization Platform work?
Asset tokenization platforms enable the creation of a digital proof of ownership for real-world liquid assets such as cocoa.
These asset-backed tokens have liquid value. Digital assets offer a system for facilitating transactions.
Digitizing Farms as assets to Help Sales and Funding
It is hard for farmers to get funding using their land as collateral, as ownership of land can be opaque and hard to easily verify.
This has trapped assets and the release of capital that could be utilized by farmers by tokenizing the farms.
This can help provide access to digital asset-backed loans for farmers in the state.
Documents to be Tokenized:
The registered and verified certificate of title
OR
Where the title is not registered, vesting rights, which could be Deeds of Assent or Vesting Deeds as applicable.
⦁ Certified True Copy (CTC) of the Letter of Administration/Will (Where applicable).
⦁ Deed must be dated, signed and each page initialled.