Overstock’s Medici Ventures Buys 10% in Blockchain-Oriented GrainChain
Overstock’s blockchain VC arm Medici Ventures acquired 10% ownership in GrainChain, a blockchain-oriented platform provider focused on grain producers and traders.
GrainChain, a company providing blockchain-based software tools focused on payment solutions for farmers, buyers, and grain elevators, announced on Tuesday that Medici Ventures, the blockchain-oriented venture capital arm of e-commerce firm Overstock.com, had invested $2.5 million in its equity. Thus, Medici Ventures acquired 10% ownership in GrainChain with the option to buy an additional 10% stake at a later date.
GrainChain was founded five years ago by SiloSys’ founder. The company provides a blockchain platform with the goal to reduce the number of manual operations related to weighing and monitoring agricultural yield. GrainChain proposes a financial settlement system that relies on distributed ledger technology (DLT). It enables grain producers and traders to develop smart contracts to automate and secure payment processes. According to GrainChain’s official site, there are currently 1,439 participants, and the platform has processed 84,410 transactions so far.
Besides blockchain technology, GrainChain also leverages the Internet of Things (IoT). Thus, IoT devices are used to measure grain weight and quality, which reduces human error and manipulation. Also, the system allows for the creation of digital documents to track the grain from the farm to the end user.
Luis Macias, co-founder and CEO of GrainChain, commented:
“We are making the grain transaction extremely efficient, transparent, safe and secure, and we're giving not only the farmers but also the buyers a safe marketplace to do business in.”
“At the end of the day, we're just leveling the playing field for the farmer, giving them much more power and control over the selling process,” he added.
At the moment, GrainChain is providing its blockchain platform in the US and Mexico. The funds raised from Medici Ventures’ investment will be used to expand its business in Central and South America.
Medici Ventures is open to investments given that its parent Overstock is doing well from the financial perspective. Last month, we reported that Overstock reported positive quarterly revenue figures.