Overstock’s Medici Invests $2.5 Million in Grain Tech Firm’s Blockchain Pivot

Overstock subsidiary Medici Ventures is investing in a software business seeking to shop grain transactions on a blockchain.

The company announced Tuesday it was paying for $2.5 million of equity stake in GrainChain, a approximately six-year-old company which develops software equipment to support farmers and purchasers in the grain marketplace. Medici’s order provides it a 10 p.c possession stake in the company, with the selection to order a further 10 p.c at a long run day.

Though GrainChain originally made world-wide-web of things-targeted software, CEO Luis Macias informed CoinDesk that the company began seeking into using a blockchain ledger about two years back.

At the time, the company’s methods were having difficulties coordinating with “thousands of vans on a each day foundation,” because of to the variety of contracts that experienced to be filled out and executed manually.

To fight these difficulties, the company is developing a blockchain system that would make it a lot easier to keep track of grain and hook up with a larger sized set of potential buyers, Macias reported.

He defined:

“What it’s doing is not only leveling the participating in subject for the farmer but … giving a far more exact vision of the place that grain is coming from, how it’s becoming paid out and how it’s relocating as a result of the market. It is eliminating the have to have for several-tier middlemen in the marketplace.”

There are around 500 farmers piloting the network right now, with a further 3,000 or so on a ready list, he reported. The company expects to go are living with the system by the initial quarter of next year.

In addition to grain monitoring, the system utilizes a token, dubbed GrainPay, to aid payments. The dollar-backed stablecoin is intended for inner use only, and is used in conjunction with the contracts farmers develop with potential buyers.

As an example, Macias cited contracts involving farmers in Argentina. “This is a contract that is ordinarily performed months in advance,” he defined. “When it’s executed months later on, the farmer is capable to provide the grain, get GrainPay and transform it to dollars or the Argentinian peso at the day [the contract] was developed.”

The token is used to stabilize forex fluctuations, making certain neither aspect loses out because of to volatility. It is also helpful for cross-border payments, Medici president Jonathan Johnson informed CoinDesk.

“It would make these cross-border payments far more frictionless, faster and a lot easier, and so the cross-border facet to this is what would make it so captivating to several of the farmers,” he reported.

Wheat subject image by using Shutterstock