Blockchain powered agri-trading platform

Cerealia is a marketplace, that enables participants in the physical agri-commodities’ trade to transact with high certainty.

Being industry experts, Cerealia targets roughly 400 bln USD/year global trade in grains, oilseeds, vegetable oils and feedstuffs with initial focus on very dynamic Emerging Markets’ part. The opportunities for improvements by new tech in this market are endless, as it largely remained in the same mode the last 100+ years. And most pain points & eagerness for solutions are situated in Emerging Markets.

The Problem

Huge Uncertainty of the Trading Process

Negotiations conducted today with verbal agreements, via brokers, without any certainty/trace of interest’s nature (firm or quote) or time allocated for its validity

While in most EMs only signed contracts are legally binding, to get one promptly from your counterparty is a tough affair. Many agreements do fall apart, and companies limit trading partners by a selected group of “trusted” ones only

Price discovery is hard to come by in a chaotic market and hedging options are not workable for many due to futures’ markets mainly existing for Western World origin agri-commodities

Global agri-trade is being done exclusively in USD - local parties depend on it to trade and exposed to strong FX moves, as well as to sky-high trade finance interest rates

Solution. Phase #1 Completed‎ ✓

Delivering business certainty, Cerealia trading application enables to:

  • Place trade interests, creating a new marketplace
  • Give firm e-bids / offers, with a clearly set “time bomb” & advanced e-signatures (AdES)
  • (inquire to) Sign contracts instantaneously with timestamp and AdES
  • Streamline contract’s execution on customized, intuitive e-templates
  • All actions, even intention to trade, every doc exchanged, are recorded immutably on a fast public blockchain

Solution. Phase #2 (2020-22)

  • Go live with our Marketplace & Trading App (Q1 2020)
  • Connect users with our partners who will propose new generation of fintech products geared for global agri-trade: intl. payments, trade finance, hedging, parametric insurance, chartering, etc. enabled by blockchain.

Solution. Phase #3 (Q1 2023)

Why blockchain

Blockchain will bring the following game changers to agri-trading:

Single source of truth

All actions, related to contract’s negotiations, conclusion and execution, can be recorded on blockchain in this way, with a unique identifier - hash and time stamp.

Smart contracts

Programs with pre-agreed terms, that auto-execute, enabling to enforce contract’s execution & transact with disparate, unknown parties, without need of trusted intermediary.

Cross-border payments

Almost instantaneous, payments in the currencies of clients’ choice (fiat, cryptos).

Tokenisation of commodities

A way to digitally represent their ownership rights, thus enabling to trade the goods and post them as collateral in an efficient, liquid form. Trading publicly such tokens will bring precise, local price discovery.

New sources of trade finance

Stable-coins, CBDCs, Bitcoin, Altcoins. Full potential - when crypto wallets/currencies will be widely used. Fintechs are already providing credits in cryptos, Banks - expected to follow soon. They will guarantee payments as per smart contracts (similar to current Letters of Credit).

Business Model and Revenue Streams

High-tech brokerage house

We are looking for:

- Investors, Partners, Contributors

If you wanna be part of a hi-tech start-up, aiming to revolutionize agri-trading, before we soon make our Security Token Offering (STO) fund raising, please let us know.

Initial Market Target

The Black Sea opportunity

Cerealia initially targets a 20 billion USD worth market, representing about 25% of world grain trade: a flow from the Black Sea region (Russia, Ukraine, Romania, Moldova, Bulgaria) to the Mediterranean Basin (Turkey, Egypt, Tunisia, Lebanon). This is the region where our founder has worked as agri-trader for 20 years.

In the past year, Cerealia has conducted community-building efforts targeting the Black / Med Seas’ gain trade.

Overall, Cerealia identifies approximately 5’000 companies active in worldwide agri-commodities’ trade, all of which either trade Black Sea origin cargoes or watch that space closely given its growing grab of the global trade volume.

Watch Cerealia Videos

CEREALIA's CEO interview at Global Grain Geneva, Nov 2018, Switzerland

Chat with Swithun Still, Deputy President of GAFTA & Director of Solaris Commodities

Cerealia in the Media

Blockchain trade boosts 'data integrity' in Black Sea wheat: Cerealia

08/11/2019 S&P Global Platts

London — Swiss startup company Cerealia Thursday highlighted the boost to “data integrity” of the first trade of Black Sea wheat using blockchain technology to be negotiated and executed last week using its start-up trading platform.

The trade was for 3,000 mt of Russian 13.5% protein wheat on a CIF Marmara basis for spot shipment, between Switzerland-based Korel Trade Company selling to Turkey’s Kavukcu Ulas.

The trade was negotiated and fully executed using blockchain technology on a the trading platform developed by Cerealia, based in Lausanne, Switzerland.

Blockchain is a mechanism that allows the chronological and public display of transactions that have taken place on the platform.

“The parties have been able to record all actions (from negotiations to concluding the contract and all execution steps and cargo docs) and sign them with advanced e-signatures on a public blockchain,” Cerealia CEO Andrei Grigorov said Thursday.

The company used a state-of-the-art cryptographic hash algorithm to secure a single version of the cargo documents via blockchain, guaranteeing all parties to the trade — including banks — access to its documentation.

“Even if one letter or comma in the doc changes — the algorithm generates automatically a completely different specific recording numbers, hash – thus permitting to ensure total data integrity,” said Jaime Delgado, Cerealia’s chief technical officer.

The technology allows deals to be negotiated efficiently, reducing the time and costs of execution, with a detailed history of all actions and documents exchanged and traders no longer having to wait for signed paper contracts.

“The Cerealia platform created a customized execution e-template for us, exactly as per our contract terms, with all of the main details and notifications in one place and always in front of our eyes, which basically enabled us to effect a much more streamlined trade execution than the usual old way,” according to Celal Koc, a trader at Korel.

An independent auditor has reviewed and confirmed all of the steps related to the trade negotiations and execution.

Last year, Solaris and Transoil International carried out a blockchain trade of Black Sea wheat bilaterally, registering it subsequently on the Cerealia platform.

Platts assessed CIF Marmara 13.5% protein wheat at $217.50/mt Wednesday.

— Alexandre Bobylov, alexandre.bobylov@spglobal.com

— Edited by James Leech, newsdesk@spglobal.com

Read full article on S&P Global Platts site

Black Sea wheat sees blockchain trade

12/11/2018 S&P Global Platts

London — Black Sea wheat traded using blockchain Monday in a pilot deal between Solaris and Transoil International via the Cerealia Platform, the platform’s developer said.

A Russian 25,000 mt parcel of 11.5% protein wheat on a FOB basis at Novorossiisk for December delivery traded for an undisclosed price.

The platform developer said it was the first such Black Sea wheat deal.

Blockchain is a mechanism that allows the chronological and public display of transactions that have taken place on the platform.

The goal is to minimize risk and any conflict that may arise by storing all related data on blockchain to settle disputes smoothly, should they arise.

While contract details including price or loading rates are not visible to the public, it is possible to see that such a trade has taken place and that its contract terms are uploaded onto the system in an encrypted format.

“An independent auditor has reviewed all the important details of the trade from the blockchain and validated the smart contract, digital signatures, signed document and timestamps. He also confirmed that data has been encrypted, that no other data has been stored and that all data is up to date,” Cerealia, a start-up based Lausanne, Switzerland, said in a press release.

“The next stage is to support emerging market traders in their local domestic currencies using fintech,” Cerealia CEO and co-founder Andrei Grigorov said.

This trade follows a Black Sea wheat trade heard in the previous marketing year that was completed using a cryptocurrency. — James Colquhoun, James.Colquhoun@spglobal.com

— Edited by Keiron Greenhalgh, newsdesk@spglobal.com

Read full article on S&P Global Platts site

Testimonials

Transoil Group

Thierry Beaupied, Head of Trading

We are delighted having participated in the 1st ever Black Sea Grain Trade on a Blockchain, via smart-contract, powered by Cerealia platform. We and our counterparty were able to seamlessly exchange contract terms in an encrypted format and instantaneously digitally sign the contract by entering our private keys. Speed, confidentiality and data security were the name of the game.

Cerealia team has a strong combination of agri-business experience with exceptional technology talent, and is advised by global industry leaders.They know the main pain points on our market and are developing the right solutions to address them. We are supporting Cerealia’s efforts and can only recommend other agri-trading players to come on board and use their innovative tools for your benefits.

Kavukcu Group

Avsin Kasikci, Chairman & CEO

Cerealia already delivered first stage of their blockchain platform. Recently they have made a demo of their App in our office. The App enabled a quick exchange of contract terms in an encrypted, safe environment and to conclude instantaneously the contract by digitally signing it with a private, secret key. All the actions and time stamps were recording live on a public blockchain.
We are looking forward to participating in Cerealia Pilot trades and looking forward to using their platform as soon as they go live.

Korel - grains & coal trading company

Celal Koc - Director

I was excited to find about Cerealia Trading Platform when Mr. Grigorov came over to our office and showed it to us. The world is changing faster then ever and we all have to adapt to it in order to carry our business to the future. This platform has the potential to revolutionize physical grain trading. It would not be fair to call it an improvement on existing business, since it can change the way the business is done from trading to execution, providing speed, transparency and the much needed reliability.

FAQ

What is Cerealia?

Cerealia is a blockchain powered trading platform, that enables participants in the physical agri-commodities trade, to transact with higher certainty, with more, even unknown counterparties.

What commodities does Cerealia support?

Wheat
Barley
Corn
Millet
Oats
Rye
Sorghum
Triticale
Rice
Peas
Chickpeas
Buckwheat

What are your competitive advantages?

We use blockchain for two important things:
– to record and sign with advanced e-signatures all actions (negotiations, contact and its execution) and cargo docs;
– to ensure their authenticity and data integrity.

We also provide digital execution templates, created exactly as per customers’ contact terms and whick enable to streamline execution process, to have all due dates and docs in one place.

Who is the target audience of your ecosystem?

Companies involved in agri-trading, with a particular focus on emerging market countries.

How much are the fees?

For the physical trades Cerealia charges much lower fees compared to the existing market. Please email us for more details.

Where can I ask questions?

contact@cerealia.ch

From the IT perspective, what is the Cerealia System?

Cerealia is an app, working in a secure cloud, which bundles together state of the art encryption, public blockchain and FinTech solutions. To the end user the platform is accessible through an easy and effective web browser interface.

Do I need to make IT investment to use Cerealia system?

Nothing at all. Not even application installation is required. Just connect to our web app with your credentials.

When I can start to use Cerealia System?

We are currently preparing the platform to go live in Q1 2020.

Our Partners

Team

Andrei Grigorov

Founder / CEO

Jaime F. Delgado Saa

Chief Technical Officer

Wang Zhong

Senior Software Engineer (Backend)

Zheng Guo

Frontend Developer

Roman Tarasevych

Designer, Ein-Des-Ein

Dimitriy Tolmachov

Project Manager, Ein-Des-Ein

Nikita Rodionov

Marketing & PR

Malak Al Akiely

MENA development manager

Swithun Still

Advisor

Thierry Beaupied

Advisor

Jens Emrich

Advisor

Alexander Hanson

Advisor

Celal Koç

Advisor

Thomas Houghton

Advisor

Natalja Skuratovic

Advisor

Contact

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Let's keep in touch!


Single source of truth

All actions, related to contract’s negotiations, conclusion and execution, can be recorded on blockchain in this way, with a unique identifier - hash and time stamp.

Distributed Ledger Technology represents — in an immutable way — ownership and transfer of value or property associated to it without an intermediary (what is called trustless consensus). This enables transactions to be able to operate autonomously using programmatic features called smart contracts, that rely on cryptography to perform/validate their purpose (e.g. move around assets, execute agreements) with an unprecedented level of security (distributed systems have no single point of failure).

Smart contracts

Programs with pre-agreed terms, that auto-execute, enabling to enforce contract’s execution & transact with disparate, unknown parties, without need of trusted intermediary.

Smart contracts will have the same wording “as per GAFTA”, but the payment will be automatically effected as soon as required digital documents are implemented on a blockchain. Other conditions will self-execute as per pre-agreed terms. No more Letters of Credit will be needed, their more efficient versions will simply be embedded into smart contracts. Obtaining signed contracts won’t take days or weeks as it does today. Buyers and sellers will instantaneously digitally sign contracts immediately after the terms are agreed. Blockchain and smart contracts render transactions fast, efficient, traceable and irreversible, which limits disputes, serves audit and arbitration purposes.

Assets tokens

Tokenized cargo for easier trade

We will propose tokenization of cargo to our customers, which will enable them to quickly match delivery versus payment, transmission of ownership, collateralization and allow easier trade of goods in a liquid digital form. The tokens will reflect the exact specifications of the goods, depending on quality, origin and distance from the most active delivery points. CEREAL tokens will trade on our platform. This will enable price discovery, especially for the unlisted products. It will be backed by grains, therefore equal to e.g. wheat or corn prices. All kind of investors might be interested in this token.

Cross-border payments

Almost instantaneous, payments in the currencies of clients’ choice (fiat, cryptos).

Companies on our platform will be able to trade in the currencies of their choice (national currencies, stablecoins, tokens, etc), all enabled by Blockchain and financial technologies. Together with our regulated partners we will provide trade finance – much cheaper then using traditional banks outside of the Western world and also in our customers’ preferred currencies. Fintech is a new untapped source of trade finance. Companies will have a constant access to stable-coins to insulate themselves from currency volatility.

Tokenisation of commodities

A way to digitally represent their ownership rights, thus enabling to trade the goods and post them as collateral in an efficient, liquid form. Trading publicly such tokens will bring precise, local price discovery.

We plan to make hedging readily available to our clients on the same dashboard where they will trade physical commodity. We strongly believe in OTC derivatives like Swaps which can be accessible and affordable to SMEs and farmers. Clients will be able to trade Swaps in the form of smart contracts. Furthermore, we plan partnerships with major international and local agri-news providers, in order to have the most complete grain trade news offer on our platform.

New sources of trade finance

Stable-coins, CBDCs, Bitcoin, Altcoins. Full potential - when crypto wallets/currencies will be widely used. Fintechs are already providing credits in cryptos, Banks - expected to follow soon. They will guarantee payments as per smart contracts (similar to current Letters of Credit).

A large share of grain trading is done through the physical market brokers. Brokers with the current biz-done-on the-phone model are basically only fixing the contracts’ prices and slowing the processes. CEREALIA is positioning itself as a new type of efficient broker, providing not only trading but also trade finance and tokenization, all backed by blockchain technologies.

Andrei Grigorov

Founder / CEO

Agri-products trader with 20 years’ experience in intl. grains, oilseeds and veg. oils trading and logistics.

Began his career at French grain brokerage house Plantureux, then switched to trader’s role at agri-division of LUKOIL, then to head of Russian grains origination at Transoil Intl, and later set-up with partners his own trading company – Euro Trust Trading and propelled it from scratch to one of the most reliable suppliers of 3-5k mt grain cargos to Med destinations for 12 years.

Traded and executed over 1000 agri-products vessels during his career.

Has extensive experience in structuring, negotiating trade finance facilities with all Swiss banks involved in this business.

Extensive knowledge of derivatives and hedging tools too.
42, half Russian, half Ukrainian

Speaks Russian, English & French

Jaime F. Delgado Saa

Chief Technical Officer

Ph.D. in electronics engineering, specialized in computer networks, Jaime’s professional & academic experiences cover the development of software-based models for different types of applications, including artificial intelligence, pattern recognition, blockchain, and smart contract-based solutions. Hands-on experience in the design of frontend and backend systems. Jaime is particularly interested in the development of trustless, decentralized applications for services in the financial & commodities sectors.

Wang Zhong

Senior Software Engineer (Backend)

M.S in Computer Science.

Wang is specialized in back-end development. Since the beginning his journey as a freelance web developer nearly 10 years ago, he worked for agencies, consulted for startups and collaborated with talented people to create digital products, both for business and commercial use. Wang is quietly confident, naturally curious and perpetually improving his chops.

Zheng Guo

Frontend Developer

Zheng is a seasoned ReactJS and React Native developer. He started software development 8 years ago and got experiencie in Web and Mobile Development. During that time he acquired enough knowledge about how the software works in harmony with hardware.
Zheng have also 6 years of experience in native iOS and Android development, specifically in Java and Swift/Objective C.

Roman Tarasevych

Designer, Ein-Des-Ein

Dimitriy Tolmachov

Project Manager, Ein-Des-Ein

Nikita Rodionov

Marketing & PR

Nikita has diverse experience across many sectors of business,
including agro-business and international trade. He is a supporter of
the strategic approach to business development and marketing. He holds
degree in economics and law, and now obtains degree in Information
Systems to pursue his interest in blockchain technologies. He speaks
Russian, English and French.

Nikita is a great addition to our team. His natural need to understand market and current players helps Cerealia to shape the best way to deliver our product to the market.

Malak Al Akiely

MENA development manager

Malak Al Akiely is a Founder and Managing Director of Golden Wheat for Grain Trading, Ltd. – company, representing multinational grain traders in Jordan. She is the sole female owner of such company in the MENA region with over ten years of experience in agricultural commodities trading and business development with focus on food security. Malak is co-Partner in Golden Kayan for Marketing Consulting Co. for Oil & Energy and consultant on Oil and Aviation investment projects in East Africa. Malak Al Akiely have been selected as a Young Global Leader (YGL), class of 2017, an honour bestowed by the World Economic Forum.

At Cerealia Malak is providing us an essential help in the Middle East Market.

Swithun Still

Advisor

Swithun Still started his career in the grain market in 1999 in London, before moving to Paris in 2001 and to Switzerland in 2003.

In 2009 Swithun joined Alegrow S.A. as Commercial Director and in 2011 became Director of Solaris Commodities S.A. and is specialized in the trade of Black Sea grains, mostly Russian wheat and corn.

Swithun acts as a GAFTA Arbitrator and Appeal Board Member and is also currently Deputy President of GAFTA Council. He holds a degree in Russian & French from Durham University.

Thierry Beaupied

Advisor

Thierry has 30 years experience in commodity trading.
Graduated from the French merchant navy school in 1981, Thierry has sailed over-the world as seafarer. He spent two years onboard of Louis Dreyfus’s panamaxes.
After the army in the French navy, Thierry joined the Lesieur Group to market margarines and pastry ingredients. Then, strong from his shipping experience and oleo products, Thierry joined Plantureux SA in 1989 to become a grans and oilseed physical broker. In 1994 he was among the very first brokers at that time to open the Black Sea grains and seeds market after the collapse of the USSR.
As Plantureux was one of the founder rapeseed futures market with MATIF, Thierry gets skilled on futures markets and trading OTC option on physical vegoil.
In 2003, Thierry decided to joint Trans-Oil International SA as head of trading, one of his fast growing client from the Black Sea.
Trans Oil group employes about 2000 employees in three countries on Black Sea. With 42000 hectares of farming operations.

Jens Emrich

Advisor

Jens is an international Executive specializing in General Management and Finance, with 20+ years leadership experience in food, agricultural companies and FMCG, a track record in building new organisations, expanding markets and implementing operational processes and structures. Holding a university degree in Business Administration.
He started his professional career in Controlling for global Business Management at FMCG giants such as The Gillette Company and Braun in Germany. Then he switched to Lorenz Bahlsen Snack-World, one of the biggest savoury snack producing companies in Europe, where he was in charge of several Executive Finance functions at corporate level.
From 2008 onwards he was responsible as Managing Director for the set-up and managing of the green field operation, the new group shared service center in Poland with 80+ employees, handling AR, AP, GL, Cash Management and IT/SAP application services for 22 legal entities in 4 countries.
In 2012 he moved to Switzerland with his family, starting as General Manager of LBNUTS AG, an independent business unit of the Lorenz Bahlsen family. He was responsible for sales and global sourcing from origin for nuts & dried fruits including the factories in Egypt and Germany and an annual turnover of > 100 Mio. Euro.

Alexander Hanson

Advisor

Alexander Hanson is the founder of ARC (Active Risk Consulting), specialising in turning risk into advantage and growth for businesses.

ARC is a collaboration of business associates, leveraging expertise in Risk Management, Data Quality Management and Trade Finance as well as Insurance, Compliance and Legal Services which can be applied across many industries and business cycles.

Following graduation with a First-Class degree in Applied Chemistry from Kingston University, he spent a further nine years working in the UK before settling in Switzerland in 1996.

He has held senior executive roles within blue-chip, multi-national corporations on a global, regional and country basis across various commodity, trading, supply chain and processing industries.

He brings extensive knowledge of risk management, business transformation, trading, operations, logistics and financing.

Celal Koç

Advisor

A senior trader with finance and management background. Began his career at Treasury Department of Isbank Turkey in 1998. Worked different senior banker positions and completed several tasks in Istanbul, Dublin and Moscow until he switched from banking to shipping and commodity trading in 2008. Since then, he works at Korel, an energy and grains trading company, as a director responsible for grains. Native in Turkish, speaks English and Russian, holds BA in International Relations from Bilkent University and MBA from University College Dublin.

Celal’s both banking and trading extensive experiences, in relation to Turkey, but not only, will be very valuable for Cerealia.

Thomas Houghton

Advisor

Working in the commodity industry since 2010, Tom began his career in mining and metals. He switched to agriculture in 2015 when he joined S&P Global Platts and was part of the team which launched the Black Sea swap.

In 2017 he was one of the founding members of AgriCensus where he is responsible for its global wheat and barley market coverage.

Natalja Skuratovic

Advisor

Senior Grain Trader, Agri-Business Analyst. Extensive experience in international grain trading, logistics, trade finance, hedging.

Natalja holds two Master’s degrees: International Business Administration and Romance & Germanic Philology and speaks 10 languages fluently. She started in grain business some 20 years ago as a grain trader trainee at Glencore Agriculture BV in Rotterdam, Netherlands.

Having garnered valuable experiences at different departments while working her way up, Natalja first joined Glencore’s EU desk, where she was responsible for the EU grain markets, later strengthened North Africa and Middle East trading desk as a Senior Trader.

After about a decade with Glencore, Natalja was head hunted by CairoThree A, who is a major supplier of agricultural commodities across in the Middle East and North Africa and engages in trading, stevedoring, and storing,as well as transportation and distribution operations.

Upon her return to Europe, Natalja briefly worked for one of the major cooperatives in Germany, Raiffeisen Waren-Zentrale Rhein-Main eG (RWZ),before becoming a senior trader, consultant and advisor to the board of an ambitious and successful privately owned Lithuanian grain and oil trading group of companies Alfagra, Litbelinvest and Premium Oils.

Natalja’s ability to facilitate consensus led her to negotiate many lucrative deals, and her profound knowledge of trading along with her communication skills, helped to ensure their successful execution.

Possessing considerable experience, knowledge, and credibility required for deal-making across the globe, and customer focused mindset and approach combined with admirable risk assessment and problem-solving skills, Natalja has excelled in the commodity world, which is still very much dominated by men.