The Bolivian cattle ranch «La Pradera» is being tokenized to finance its operations and at the same time to be the backing of the Finka security token, an ERC-20 cryptoasset on Ethereum, aimed at bovine trade. The property has an area of 3,000 hectares and currently has about 4,000 head of cattle.
In operation for more than 20 years, “La Pradera” supports the aforementioned security token that is issued by the Swiss company Finka GmbH, registered in the Crypto Valley Zug, according to Carlos Fernández Mazzi, partner and founder, informed CriptoNoticias.
The executive indicated that it is a financing strategy for expand operations and raise the number of cattle to 20,000 to 30,000 individuals. Fernández Mazzi assured that there is no financial instrument that allows anyone to invest in livestock.
“That is true innovation, that a person in any part of the world can allocate resources, according to their possibilities, for such a noble activity. That is why blockchain is so important as it allows establishing new investment mechanisms. “
Carlos Fernández Mazzi, livestock producer.
As it is a security token, the businessman made it clear that not offered directly in markets where it is not authorized by financial authorities. Its promotion is limited to Switzerland and Liechtenstein. However, anyone can invest if they do it on their own account. Regarding the regulations, he mentioned that they are very different in each country, which could be influencing the lack of a universal structure for trading with digital assets.
The Bolivian ranch has 4,000 head of cattle on 3,000 hectares. Source: finka.ch
As support for the token, the executive mentioned that the ranch does not represent an operational risk and serves to mitigate the perception of risk that investors may have. Regarding the token, Finka added that the issuance started in December last year, however, the spread of the COVID-19 pandemic has modified the marketing plans.
The token’s website explains that the crypto asset complies with the regulations of the Swiss Financial Market Supervisory Authority (Finma), which validates its promotion in the aforementioned markets. Additionally, the expected annual return for token holders is expected to be between 4% and 8%.
“Income fluctuates in line with the price of beef as a commodity. The annual income will be distributed to holders of tokens in Swiss francs, “says the website of the token, which is marketed in compliance with the guidelines of” Know your customer “and against money laundering (KYC-AML).
A review of the token on the Etherscan platform shows that the cryptoactive has a maximum issuance of 9,500,000 units. In total, there have been two operations in the last 46 days and it does not show a quote on the token and cryptocurrency market.
The tokenization of goods or other assets is a trend registered in multiple markets in recent years. CriptoNoticias has reported various modalities among which are those of digital art, data, national currencies and real estate.