The National Commission of Digital Assets of El Salvador (Comisión Nacional de Activos Digitales de El Salvador – CNAD) has authorized the first public issuance for an amount of $100 million. This involves the issuance of the digital asset $ESOY by the company eGrains, being the El Salvador’s first private tokenization. Our Fintech Department played a crucial role in the success of this process.
eGrains, recognized as a pioneer in agrocommodities investment, has redefined the landscape by offering a diversified portfolio of tokenized agricultural products, fully backed by real assets, known in technological jargon as “Real World Assets” (RWA).
The $ESOY token represents the economic rights generated in the trade of 1 bushel of soy, an internationally known commodity. This token has pioneered the innovative entry into the agrocommodities market.
From the initial phase, Torres Legal has accompanied eGrains, providing comprehensive advice in the authorization process. This included the preparation and review of all the documentation submitted to CNAD, ensuring the compliance with the Law on Issuance of Digital Assets and its regulations.
“eGrains has the ability to issue digitally backed assets under contractual terms, benefiting from the strong protection offered by local and international laws, applying rules set by Private International Law that ensure the rights of investors. In other words, all digital assets are backed by tangible assets, which can be claimed by token holders. This backing is established through traditional contracts, as well as the specific tokenization infrastructure assigned to the business, regardless of its geographical location,” says our managing partner, Héctor Torres.
The $ESOY token, which has the ability to operate 24/7, represents a paradigm shift in the market’s flexibility and accessibility, and is committed to the stability, backed by the solid foundation of soy.
Daniel Leiva, partner at Torres Legal, explains the legal and regulatory aspects involved in the issuance of $ESOY: “It was a very interesting challenge, as we had to meet the requirements set by the law. We ensured that the Relevant Information Document, detailing the technical, financial, and operational characteristics of $ESOY, meeting the requirements of both CNAD and the Certifier. The issuance complies with international standards of security, transparency, and traceability, and is backed by physical contracts on soy futures, ensuring its value and liquidity.”
“We are proud to be part of this transformative project alongside eGrains,” comments Héctor Torres, managing partner of Torres Legal. “This initiative represents a significant advance in the tokenization of tangible assets, providing a unique opportunity for investors interested in the agricultural commodities market,” he adds.
This successful collaboration between eGrains and Torres Legal demonstrates the potential and feasibility of the tokenizing in tangible assets, opening new opportunities in the financial sector and supporting the development of more inclusive and efficient markets.