Paper Backed by Wheat: Fintech Breakthrough in Agribusiness
Russia has launched its first digital rights instrument backed by physical wheat deliveries, opening new opportunities for financing the agricultural sector. A group of companies in the agricultural sector has issued utilitarian digital rights (UDRs) backed by the delivery of food-grade wheat to raise financing.
What It Means
The agricultural holding Melkom has
introduced a novel financing tool: utilitarian digital rights (UDRs) backed by
third-class wheat. This is the first time Russia’s agribusiness sector has used
UDRs. Each digital right represents a claim to 100 kilograms of grain. The total
fundraising volume could reach 510 million rubles (about 5.6 million USD),
equivalent to roughly 34,000 tons of wheat.
The issue runs on the investment platform Status-Invest until September 25, 2025, with deliveries scheduled between May and July 2026. The instrument’s maturity is nine months, with pickup available in Tver and Istra. By securitizing commodity flows, agribusiness firms can reduce debt loads and optimize working capital. Unlike bank loans, this model carries no interest, while linking directly to a physical asset that typically appreciates in value every year.
How It Works
By purchasing digital rights, investors effectively finance grain procurement. In return, the issuer guarantees delivery of a share of that grain. This approach protects investors against inflation and volatility while preserving liquidity. The Status-Invest platform guarantees transparency and security by handling participant identification, rights registry, and compliance oversight.
Plans are underway to build a secondary market, enabling resale of UDRs. This would boost liquidity and open the instrument not only to large investors but also to medium-sized businesses.
Future Potential
“We do not see this as a one-off initiative but as the start of a new stage in agricultural finance,” said Mikhail Dorofeev, First Deputy CEO of Melkom. Small and medium-sized farms struggling to access affordable financing could use UDRs to raise funds against future harvests, lowering costs and simplifying planning.
Experts argue that if combined with blockchain technology, UDRs could form a transactional infrastructure capable of bringing Russian investment platforms to the global market.
The Road to Digital Rights
UDRs entered Russian legislation in 2019, with no global equivalent. Federal Law No. 259-FZ restricted their circulation to platforms accredited by the Central Bank of Russia. In 2020, these norms were added to the Civil Code, along with a new law on digital financial assets. The Association of Investment Platform Operators (AOIP) supports UDR development. In October 2025, the second All-Russian Conference on Investment Platforms will address regulatory frameworks for digital assets, including UDRs.
Until now, UDRs have been used mainly for crowdfunding or consumer goods supply. Backing them with a major agricultural commodity and launching secondary market plans represents an unprecedented move. It shows how the real sector can integrate with digital finance, creating new models for funding and asset management. With both technological and regulatory frameworks maturing, and businesses eager for innovation, Russia’s digital economy is entering a new phase.
