Indian agricultural storage and lending company Arya.ag is testing a system to tokenize warehouse receipts for stored grain on the Avalanche layer-1 blockchain.
Arya.ag is collaborating with Finternet to use the network to link data on grain deliveries, warehouse receipts, collateral pledges, and loan statuses.
Ava Labs India Head Devika Mittal told Cointelegraph that testing is already underway, stating that each tokenized receipt will represent ownership of the stored commodity. The companies did not disclose a projected launch date or the volume of grain or lending the initial rollout will cover.
Finternet Labs Director Sanmesh Kalyanpur said Arya.ag sampling specialists collect data on stored grain and feed it into a corporate portal. Finternet will combine information on the farmer, commodity, warehouse, and insurance into what Kalyanpur called a "composite token," which banks can use when assessing collateral risk.
According to the announcement, Arya.ag stores about $2 billion worth of agricultural commodities across its warehouse network and facilitates loans worth around 120 billion Indian rupees (approx. $1.26 billion) annually. Its Arya Dhan lending unit disburses loans of approximately $230 million each year.
These figures describe Arya.ag's existing business and do not mean the assets or loans are already on-chain.
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Finternet concept dates back to 2024 BIS paper
The Finternet concept was outlined in a 2024 Bank for International Settlements (BIS) paper co-authored by Infosys co-founder Nandan Nilekani and then-BIS chief Agustín Carstens.
The paper proposed creating interconnected unified ledgers for tokenized assets, while emphasizing the need for appropriate legal and regulatory frameworks.
In January, Cointelegraph reported that the value of real-world tokenized assets on Avalanche surpassed $1.3 billion by the end of 2025, driven by loans and tokenized money market funds.
India expands agricultural lending against warehouse stocks
Electronic warehouse receipts enable farmers and agribusinesses to obtain loans against commodities stored in warehouses instead of selling them immediately after harvest.
Arya.ag and Ava Labs stated their system aims to provide lenders with a common ledger showing what grain is stored, who owns it, whether it is already pledged as collateral, and what debt remains outstanding.
According to the announcement, the system will still depend on accurate verification of the physical goods represented by the digital records.
In 2024, the Indian government launched a 10-billion-rupee credit guarantee program designed to stimulate financing against electronic negotiable warehouse receipts, particularly for small and marginal farmers.
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