
Real Talk Case Study: EthicHub – Revolutionizing Agricultural Finance through Blockchain
An Interview with EthicHub
Founded in November 2017 by Gabriela Chang, Jori Armbruster, and Diego Pardilla, EthicHub is a Madrid-based platform that leverages blockchain technology to provide unbanked farmers with access to affordable financing. EthicHub connects decentralized finance (DeFi) to the productive economy of the real world, creating sustainable growth opportunities for smallholder farmers.
Can you describe EthicHub in a few sentences?
EthicHub is a crowd-lending platform that uses blockchain technology to provide unbanked farmers with affordable loans. By pooling funds from investors and using a system of crowd-collateral (Blended Finance on smart contracts), EthicHub connects decentralized finance (DeFi) to real-world agricultural projects. This helps farmers gain access to the financing they need, while giving investors the opportunity to support impactful projects in emerging economies.
What is the primary mission or goal of your project?
Our mission is to foster inclusive economic growth by providing alternative financial solutions and market access to smallholder farmers. We aim to revolutionize the financing of agriculture in emerging economies, helping farmers escape the cycle of poverty and debt while offering investors economic returns and meaningful social and environmental impact.
What are the key social or environmental impacts of your project?
EthicHub opens new doors for smallholder farmers by providing access to affordable finance and international markets, which are typically out of reach through traditional banking systems. All our participating farmers produce shade-grown coffee, a crop central to agroforestry. In line with our commitment to sustainability, all farmers sign EthicHub's Certificate of Sustainable Practices, ensuring environmentally conscious farming.
How do you measure the impact of your project?
We monitor several key performance indicators (KPIs) to gauge our success: the number of farmers supported, the total amount of funds delivered, the number of countries we are working with, the default rate on loans, and the tons of coffee sold. Additionally, we use 60 Decibels' impact assessment to measure the effectiveness of our partnership with Heifer.
Can you share a story about how EthicHub has positively impacted someone’s life or a community?
Imagine living in uncertainty, unable to plan for the future because financial resources are unpredictable. For EthicHub’s farmers, this is a thing of the past. With the assurance of financing, they can now plan for tomorrow—whether that means sending their children to school, saving for medical expenses, or repaying predatory loans. Their high-quality coffee is now exported globally, with their names proudly displayed on the bags. Through EthicHub, they gain access to international markets, earning approximately 15% more than before, and improving the quality of their coffee, as reflected in a recent rise in their SCA scores from 82 to 84 within just one year.
What cool tech does EthicHub use, and what makes it unique?
EthicHub leverages blockchain technology to power its crowdlending and crowd-collateral systems, connecting decentralized finance (DeFi) with real-world agricultural projects. The standout innovation is our Compensation System, built on smart contracts, which offers collateral for uncollateralized loans—something rarely available to smallholder farmers. This liquid Blended Finance model mitigates risk for lenders, attracting more funding to support farmers. By connecting yield farmers from the DeFi space with actual farmers, EthicHub bridges the gap between digital finance and the productive agricultural economy.
What have been the biggest twists and turns in EthicHub’s journey so far, and what exciting opportunities can we expect in the next year?
When EthicHub started in 2017, before stablecoins and other blockchain advancements had become widespread, we were among the pioneers using smart contracts for international crowdlending in agriculture. After two years of learning, we launched our impact token, Ethix, to act as collateral for loans. EthicHub has since earned several awards from both the blockchain and social impact spaces. In the coming year, we plan to expand our platform, continue innovating in the financing of agriculture, and further scale our operations globally.
Why did you choose to join Blockchain for Good Alliance?
Joining the Blockchain for Good Alliance is a unique opportunity to build synergies with like-minded projects that are using blockchain technology for positive social impact. By being part of this alliance, we hope to collaborate, spread the word about our mission, and showcase the potential of blockchain for good.
How have you benefited from it so far, or what do you hope to achieve?
We have been invited to participate in the Web3 Oscars in Bangkok and are receiving valuable support with marketing and legal aspects, particularly in drafting Terms and Conditions for our users. This exposure and support will be pivotal as we prepare to launch a new version of our platform.
What advice would you give to someone looking to start their own blockchain project for social good?
Sustainability is not just a buzzword—it’s a competitive advantage. Businesses that are not sustainable will struggle to remain profitable in the long run. While today it may seem like goodwill, regulation is quickly moving toward making accountability a requirement. Align your values with your business model, and sustainability will ensure your project’s success.
How can others get involved or support your mission?
We’re always on the lookout for users (investors, lenders, stakers), partners (other blockchain protocols, coffee roasters, sales professionals, development entities, and conscious retailers), ambassadors, and allies. Together, we can build a regenerative ecosystem and inspire others to follow alternative paths to address long-standing challenges.
Any additional information you would like to share about your project.
EthicHub is not only committed to revolutionizing agricultural finance through blockchain but also plays a significant role in advancing the United Nations' Sustainable Development Goals (SDGs). The project aligns closely with several key SDGs, including promoting financial inclusion, fostering sustainable agriculture, and ensuring responsible production practices.
To learn more about EthicHub’s measurable contributions to the SDGs, you can access our detailed report here. This document outlines how we’re driving impact across the globe, empowering smallholder farmers, and contributing to a more equitable global economy.
For a quick overview of EthicHub’s mission, approach, and key features, take a look at our One-Pager. It provides a concise snapshot of how our platform works, the benefits for both investors and farmers, and our vision for the future.
If you’d like to experience EthicHub’s impact firsthand, we invite you to explore the new version of our platform. It features improved functionality for lenders and farmers, enhanced transparency, and streamlined processes. Try it out and see how blockchain can transform agricultural finance at EthicHub.com.
EthicHub Links
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