Tuesday 18 February 2025
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A combined SMX and Ybyra can transform Brazil’s commodities landscape

Ybyrá Capital, a burgeoning force in South American commodities and real estate development, brings over $1 billion in assets under management to the table. With SMX's groundbreaking molecular marking and blockchain-backed traceability technology, the combination promises to bridge Brazil's natural resource abundance with cutting-edge innovation

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DUBLIN, Ireland – In a move poised to redefine Brazil’s global commodities trade, SMX Ltd. and Ybyrá Capital S.A. are inching closer to finalizing a game-changing partnership. Announced in December 2024, the Heads of Agreement between these two innovators indicate a shared commitment to revolutionize supply chain transparency, accountability, and sustainability. As the deal progresses , the question is not only about what the partnership means for SMX and Ybyrá but what it means for Brazil itself.

This union isn’t merely a business transaction; it’s a blueprint for unlocking Brazil’s immense natural wealth and ensuring that its resources serve as a foundation for ethical, sustainable global trade. Ybyrá Capital, a burgeoning force in South American commodities and real estate development, brings over $1 billion in assets under management to the table. With SMX’s groundbreaking molecular marking and blockchain-backed traceability technology, the combination promises to bridge Brazil’s natural resource abundance with cutting-edge innovation.

A Catalyst for Change in a Fragmented Industry

Why does this partnership matter so much? Because Brazil, while a global powerhouse in commodities like soybeans, coffee, and beef, has struggled to fully capitalize on its resources in an increasingly regulated and scrutinized global market. International trade now demands quality and volume, proof of sustainability, ethical sourcing, and supply chain transparency.

This is where a combined SMX and Ybyrá can excel. SMX’s unique technology embeds invisible markers into materials at a molecular level, creating unalterable blockchain records for unmatched traceability. Ybyrá’s extensive portfolio of fertilizer holdings, port operations, and real estate assets across Brazil complements this innovation, forming a powerful infrastructure for certifying and verifying commodity origins. The combination is beyond a natural business fit.

Together, they address a critical gap in the global commodities landscape: the ability to trace products seamlessly from source to market. For Brazil, this partnership could benefit them at the perfect time, especially with its agricultural and mining sectors facing increasing scrutiny under new regulations, such as the European Union’s deforestation-free sourcing requirements.

Unlocking Revenue Opportunities

But Brazil wouldn’t be the only winner. The potential revenue implications of this merger are staggering. Brazil’s agricultural sector alone generates billions annually, with exports of soybeans, beef, and coffee topping global charts. In 2022, Brazil exported $47.2 billion in soybeans, $11 billion in frozen bovine meat, and $8.86 billion in coffee. Combining Ybyrá’s logistics network and SMX’s traceability capabilities could create an unrivaled partnership to tap into and enhance these already massive revenue streams.

However, the opportunities for the two extend beyond agriculture. Brazil’s mining sector, including bauxite, gold, and iron ore, also stands to benefit from SMX’s traceability solutions, which ensure compliance with international standards. This capability is crucial for meeting the growing demand for ethically sourced materials in markets like Europe and Asia.

For investors, the numbers paint an equally compelling picture. Even at a conservative valuation, the combined assets of SMX and Ybyrá are worth over $600 million, significantly higher than SMX’s modest $5.45 million market cap as of last Friday. The value proposition is clear: this partnership isn’t just about potential-it’s about immediate, tangible growth.

A Blueprint for Sustainability

Perhaps most importantly, the SMX-Ybyrá deal isn’t just about financial gains; it’s about setting a new standard for sustainability in global trade. By leveraging SMX’s blockchain-backed platform to create digital twins of commodities, stakeholders gain real-time data on product origins, compliance, and environmental impact. This transparency is vital as global trade policies evolve and sustainability becomes a non-negotiable requirement.

Brazil’s soybean industry, valued at $53.2 billion annually, is another example of where this partnership can make an impact. With Europe demanding deforestation-free sourcing, SMX’s technology ensures compliance while protecting Brazil’s market share. Similarly, the coffee industry, which saw $7.4 billion in exports in 2023, would be in a position to benefit from enhanced traceability, meeting consumer demand for sustainable, ethically sourced products.

Beyond commodities, the partnership will align with global efforts to promote circular economies. SMX’s technology allows for post-consumer tracking, fostering recycling and resource recovery in sectors like biodiesel, where soybean oil plays a significant role. By integrating advanced traceability with Ybyrá’s logistical capabilities, the partnership creates a new benchmark for accountability and efficiency in global trade.

Brazil’s Moment to Lead

The most significant motivator for consummating this partnership agreement is that it’s more than a business deal-it’s a chance for Brazil to lead in ethical, transparent commodities trade. As industries worldwide grapple with sustainability challenges, SMX and Ybyrá offer a transformative solution that would do more than meet global standards-it would set them.

For Brazil, the stakes are high. But with SMX and Ybyrá on the precipice of signing a milestone agreement, the country could find itself better positioned than ever to turn its natural resource wealth into a catalyst for sustainable growth. As importantly, prove that with the right technology, partners, and vision, it’s possible to align profit with purpose.

Indeed, the ripple effects can extend far beyond SMX and Ybyrá. With innovation leading the way, Brazil can seize the moment and transform it into a blueprint for how sustainability and prosperity can go hand in hand. In other words, while closing this deal can be a massive win for SMX and Ybyrá, the biggest beneficiary could be Brazil, which could redefine its place and role in the global economy.

CIMBALI

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