Ripple Impact, in collaboration with Colombian agri-tech firm WËIA and global impact investor Mercy Corps Ventures, has launched an ambitious blockchain-based pilot aimed at enhancing financial inclusion and increasing the earnings of smallholder farmers in Colombia. This initiative, rolled out under Ripple’s Unlocking Opportunity program, uses the XRP Ledger (XRPL) to bring traceability and transparency to the country’s agricultural supply chains.
Addressing Informality and Credit Barriers in Agriculture
Colombia’s agricultural sector faces significant structural challenges. A large proportion—more than 86%—of small-scale farmers operate informally, lacking credit histories or proper accounting systems. This informality restricts their access to financial products and services, excluding nearly four out of five rural residents from formal credit lines. As a result, many of these farmers earn significantly below the minimum standard for a living wage, creating persistent cycles of poverty.
Ripple’s pilot, which currently reaches 300 farmers and processes approximately 240 tons of unrefined whole cane sugar each month, aims to address these structural issues. By integrating blockchain traceability through WËIA’s platform, built on XRPL, the project allows for the creation of verifiable, tamper-proof records that track agricultural products from planting through to harvest. These records are made accessible to buyers and end users via QR codes, enhancing transparency and accountability across the value chain.
Tackling Food Fraud and Strengthening Market Access
The project is designed not only to improve the livelihoods of farmers but also to tackle wider global issues such as food fraud, which affects around 10% of the global food supply and incurs an estimated $50 billion in annual losses. By providing immutable and accessible data about the origin and sustainability of produce, the initiative builds trust among consumers, suppliers, and retailers.
Another key innovation introduced in this pilot is the Farm Now, Pay Later (FNPL) model. This approach allows farmers to obtain essential agricultural inputs in advance and defer payments until after their harvest. The model, backed by blockchain-generated traceability data, provides crucial financial flexibility to informal farmers who otherwise struggle to access credit or capital in traditional financial systems.
Empowering Women and Building Sustainable Ecosystems
The initiative also emphasizes gender inclusion. Of the 300 farmers participating in the pilot, 46% are women—nearly double the national average of female representation in agriculture, which stands at 26%. This shift indicates a broader effort to empower marginalized groups within rural economies.
The pilot will track various impact metrics, including increases in product value linked to verified sustainability efforts, improvements in retailer satisfaction due to transparent reporting, and growth in formal contract arrangements such as forward purchasing agreements.
Through this blockchain-enabled ecosystem, the project is expected to not only improve income stability for farmers but also foster compliance with international sustainability standards. The increased transparency throughout the supply chain encourages long-term business relationships, reduces uncertainty, and creates fairer access to markets.
A Model for Global Replication
Ripple and its partners envision the Colombian pilot as a model that could be adapted and replicated across other agricultural communities worldwide. By combining blockchain technology with real-world challenges in rural economies, the initiative highlights a practical pathway for leveraging digital innovation to drive financial inclusion, transparency, and sustainable economic development.
As the project scales and further data becomes available, it may inform global strategies aimed at integrating smallholder farmers into modern, equitable value chains. The use of blockchain in this context presents a compelling case for how decentralized technologies can serve human development goals while reinforcing accountability and efficiency in traditionally opaque sectors.
