Indian agritech company Arya.ag, the country's largest agricultural warehouse operator, is launching its own first-layer blockchain based on Avalanche technology to tokenize grain, warehouse receipts, and loan statuses. The initiative was reported by CoinDesk, citing a statement from Nandan Nilekani, co-founder of Infosys and head of the Aadhaar project, at the Global Fintech Festival in Mumbai.
The system is designed to help banks and other lenders verify collateral for agricultural loans faster, as the value of grain stored in Arya.ag's warehouses amounts to approximately $2 billion.
How Avalanche Is Used for Agricultural Lending
When a farmer delivers grain to a warehouse, they can obtain a loan using the harvest as collateral instead of selling it immediately. The problem is that information about the grain volume, its collateral status, and outstanding debt is often stored in different systems, making it more difficult for lenders to verify whether the data is consistent.
Arya.ag aims to consolidate this information into a blockchain ledger accessible to warehouses, lenders, and other participants in the system. This is expected to simplify the verification of assets used as loan collateral, although the company has not yet specified the exact impact on loan accessibility.
The statement notes that potential outcomes of the implementation could include "faster approvals, lower costs, or broader access to credit," but these effects must still be demonstrated after the system is scaled.
Arya.ag is creating its own L1 for this purpose using Avalanche technology and will manage the network independently. In the future, it is planned to open the network to other warehouse companies, and banks can already connect to the system.
"The L1 is operated by Arya. Currently, this is a specialized deployment that will later be scaled to support other warehouse companies," said Devika Mittal, head of the Indian division of Ava Labs.
She added:
"It is worth noting that any bank can already join the L1, and three major banks are already joining the L1."
The foundation of the system is electronic negotiable warehouse receipts (e-NWR). These documents are already used in India and have legal recognition as collateral for bank loans against agricultural goods.
Arya.ag provides some loans directly through its non-banking financial company, Arya Dhan. Other loans are provided by banks and financial institutions that use Arya.ag's information to verify the presence of grain and ensure it has not been previously pledged to another lender.
According to data released as part of the announcement, Arya.ag stores agricultural goods in its warehouses worth approximately $2 billion. In its traditional business, the company facilitates about $1.3 billion in loans annually, while Arya Dhan directly issues around $230 million in loans.
However, the company did not disclose the volume of loans or assets already transferred to the new blockchain system and did not specify timelines for its scaling. Financial terms of the collaboration with Ava Labs were also not disclosed.
Arya.ag's initiative is another example of Avalanche's use beyond the traditional cryptocurrency market. In early September 2026, Ethena Pay—a neobank from the issuer of the USDe stablecoin—was announced to be using Avalanche as the infrastructure for its operations.
During the same period, Avalanche reported the use of its infrastructure in another large-scale financial project: South Korea is preparing a phased transition of a significant portion of its capital market to an on-chain format. The Financial Services Commission of South Korea and the Korea Securities Depository presented a plan to tokenize stocks, bonds, and funds, covering their issuance, trading, clearing, settlement, and investor rights enforcement. The launch is scheduled for 2027.
