Ripple Launches Pilot Program to Reshape Agricultural Finance and Traceability in Colombia
Ripple, in partnership with Colombian agriculture technology company WËIA and venture arm Mercy Corps Ventures, has launched a six-month pilot that is designed to reshape agricultural finance and traceability for small farmers in Colombia. The initiative is XRP Ledger-powered and is set to impact 300 farmers, providing a blockchain-powered supply chain model that could solve long-standing problems in the agriculture sector.
Excited to launch our latest Ripple Impact collaboration with @MCSocialVenture as part of our Unlocking Opportunity initiative. https://t.co/fWZfU6pwxM
In partnership with WËIA, this pilot leverages the XRP Ledger to test how blockchain traceability could boost incomes for 300…
— Ripple (@Ripple) May 15, 2025
The Initiative’s Objectives and Gender Focus
The initiative is part of Ripple Impact’s Unlocking Opportunity program, supporting financial inclusion through technology. Mercy Corps Ventures is in a leading position as a partner in the initiative. The program has a strong gender focus, with 46% of farmers involved being women, almost doubling the national average of 26% in Colombia.
Production and Blockchain Potential
Farmers participating in the pilot will produce approximately 240 tonnes of panela on a monthly basis. This unrefined cane sugar is an agricultural product of major importance in Colombia. The quantity provides a significant foundation for testing blockchain’s potential in transparency of the supply chain and income stabilization.
Farmers Get a Break — ‘Pay Later’ Model Revolutionizes Credit Access
The program is dependent on WËIA’s platform developed on the XRP Ledger that provides end-to-end tracing from planting through harvest. Buyers are provided with QR codes in each batch of product for assurance of the goods’ origin and sustainability level. The system is designed to meet the growing need for transparent sourcing practices.
The structure of the XRP Ledger facilitates this by allowing secure, affordable, and sustainable recording of data. Not only does the system of traceability prove production provenance, but it also presents new financial tools for farmers, such as a “Farm Now, Pay Later” mechanism. Under this arrangement, farmers receive inputs during the planting period without immediate payment, paying for them later with harvest proceeds through the use of traceability.
Challenges in Colombia’s Rural Economy
Currently, one of the major issues in the rural economy of Colombia is the lack of financial history and documentation. Approximately 86% of small farmers work informally, and 79% of those in rural areas have limited or no access to credit. As a result, most receive only 70% of the minimum living income of the nation.
Monitoring Impact Through Clear Metrics
The initiative, supported by Ripple, has set out three testing objectives. One is determining how traceability information impacts the market price of farmers’ produce. Another is measuring retailers’ satisfaction with relying on audited records. A third is determining how farmers are concluding formal contracts, including forward contracts, with large buyers during the program.
Combating Food Fraud and Ensuring Authenticity
The pilot also responds to worldwide issues of food authenticity. Industry sources estimate that food fraud accounts for up to 10% of world supplies and causes losses of up to $50 billion every year. By using immutable product histories, the project prevents fraud and provides a reliable system for stakeholders.
Long-Term Objectives
The long-term objective is to apply blockchain to boost farmers’ confidence in sourcing and to expand smallholders’ financial inclusion. If successful, the Colombian pilot could serve as a model for extending it to other regions with similar challenges.