- Sterling Bank Unveils Digital Commodity Trading Platform
Sterling Bank Plc has launched an end-to-end blockchain-based commodity trading and financing platform in Nigeria.
The Chief Executive Officer, Sterling Bank Plc, Abubakar Suleiman, while speaking during the launch, said the platform was developed in partnership with Binkabi and AFEX Commodities Exchange.
He said the platform would decentralise commodity trading in the country and reduce intermediation in trade while distributing profit more widely across the value chain.
Suleiman said, “By introducing and establishing a viable and efficient agricultural commodities exchange platform and by applying some of the latest scientific storage technologies and providing liquidity, we can help reduce problems and increase margins for farmers.
“In addition, this is a medium- to long-term value investment for us at Sterling Bank. The productivity gain from the partnership is that the agricultural sector will be de-risked and our farmers will become more viable for commercial lending.
“It will also create a pathway for more banks to lend to farmers without intervention funds, thereby making it possible for the government to free up funds allocated to subsidising the agricultural sector to other industries.”
The Country Manager, Nigeria, AFEX Commodities, Ayo Balogun, said the commodity exchange was designed with farmers in mind, to help them mitigate risks and ensure payments through reliable financial service providers.
Balogun said, “We are excited that Sterling Bank has come on board to enable farmers to reduce exploitation by middlemen. As a result of this partnership, farmers can use their receipt as collateral to procure loans or other financial services. They can also sell the receipt on the commodity exchange market without transferring their agro commodities from the warehouse.”
The Founder/Chief Executive Officer, Binkabi, Quan Le, said the vision of the platform “is to ensure that the commodity network becomes fairer and more profitable through collaborative efforts while leveraging blockchain technology.”