DIGITAL TRANSFORMATION OF AGRICULTURAL FINANCING: RWA TOKENS AS A CAPITAL RAISING TOOL

Abstract

This study explores the potential of implementing real-world asset (RWA) tokenization as an innovative capital raising mechanism for agricultural financing in Ukraine. Under current conditions, the agricultural sector confronts numerous financial challenges, including limited access to bank credit, high capital costs, and insufficient asset liquidity. Within this context, RWA tokenization emerges as a promising mechanism for addressing these constraints.

Analysis of global experience demonstrates that tokenization of agricultural assets - including land, machinery, crops, and livestock, can significantly expand the financial capabilities of agricultural producers by facilitating capital raising from alternative sources, such as crowdfunding platforms, decentralized finance (DeFi) protocols, and international investment funds. The application of blockchain technologies and smart contracts enables transaction automation, reduces transaction costs and enhances the transparency of financial operations, thereby strengthening investor confidence in the Ukrainian agricultural market.

This paper presents a fundamental framework of agricultural asset tokenization, identifies the primary categories of tokenizable assets, and analyzes key implementation challenges. Particular emphasis is placed on the necessity of developing an effective regulatory framework, ensuring robust legal protection for investors, and implementing comprehensive risk management mechanisms.

The study provides practical recommendations for integrating RWA tokenization into Ukraine's agricultural sector. The analysis indicates that successful technology implementation requires governmental support, engagement of specialized financial institutions, and establishment of digital agricultural asset infrastructure. The findings confirm that the implementation of RWA tokenization represents a critical step in the agricultural sector's digital transformation, potentially attracting investment, enhancing sectoral competitiveness, and improving resilience against global economic challenges.