El Salvador Lanches 1st Tokenized Security Backed by Soy 

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By LatAm Reports Staff Writers

The first issue of digital assets went on the market last Friday, amounting to $100 million, guaranteed by the price of soybean fanega (bushel).

The token value company $ESOY is Egrains and the stock exchange for primary bid is Enor Securities.

Héctor Torres, managing partner of Torres Legal, the firm that advised the issue, commented that it will provide grain producers with greater liquidity and more immediate than the traditional market, in addition to giving investors greater profitability, thanks to the “tokenization eliminates many intermediaries in the process.”

The legal part has been working with the company since last September and this issue was first certified by TR Capital and then approved by the National Digital Assets Commission in December.

The whole transaction is done through the blockchain, and that, he says, gives “greaty security to investors”; in addition, it will allow negotiation in a secondary market in mid-March.

The profitability will be paid in what the company calls a “liquidation window” that runs between March and May. To buy any of the 7.6 million tokens you will have to register at Enor Securities and can be done in dollars or bitcoin.

“What this issue really represents at a fairly large opportunity for El Salvador, on agricultural or production commodities and is an alternative to connect producers with market investors,” Torres says; and he anticipates that they are also preparing emissions from other commodities such as coffee, sugar and corn.

“The innovative thing about this is that it was a 100% private issue, different from the one announced from the volcano bond, we are not token debt but economic rights on production contracts that are going to be marketed. It doesn’t mean you can’t make private debt market, you can,” he adds.

“Prospous customers) are builders who are looking for more efficient alternatives; and micro and small producers who are wanting to expand their business model.
Daniel Leiva, partner of Torres Legal

And he points out that one of the advantages of tokenization is that there can be up to $100,000, and that implies the “democratization of the market” by making many able to invest and many can also access capital.

The issue was made in El Salvador because the buyers of this instrument demanded that it be a regulated issue, he explains.

This first issue will open the door for other sectors to also seek funds through this means, explains Daniel Leiva, partner of Torres Legal, who anticipates that there is interest from the real estate, hotel and financial market.

“It is an interesting opportunity in which El Salvador can become an emissions hub and, in turn, explore new scenarios and this does not mean that it is like a change in investment protocols with respect to traditional emissions that will always exist. Here it is simply giving investors another alternative to investors with another type of risk profile,” Torres says.

This article has been translated from the original which first appeared in La Prensa Grafica