Indian agri-lending firm Arya.ag tests tokenized grain warehouse receipts on Avalanche

Mars Finance reports that Arya.ag, an Indian agricultural warehousing and lending company, is testing a system on Avalanche’s dedicated Layer 1 blockchain to tokenize warehouse receipts for stored grains. Arya.ag is collaborating with Finternet to connect grain storage, warehouse receipts, collateral commitments, and loan statuses via this network. Devika Mittal, Head of Ava Labs India, stated that the testing is underway, with each tokenized warehouse receipt representing ownership of the stored commodity. Sanmesh Kalyanpur, Director of Finternet Labs, explained that Arya.ag’s inspectors collect information on stored grains and input it into the company’s portal; Finternet then consolidates data on farmers, commodities, warehouses, and insurance into a “composite token” for banks to assess collateral risk. Arya.ag stores approximately $2 billion worth of agricultural products across its warehouse network and facilitates around INR 120 billion (approximately $1.26 billion) in loans annually, with its lending arm, Arya Dhan, disbursing about $230 million in loans each year. The Finternet concept originates from a 2024 paper by the Bank for International Settlements (BIS), co-authored by Infosys co-founder Nandan Nilekani and former BIS General Manager Agustín Carstens, proposing an interconnected universal ledger for tokenized assets. In 2024, the Indian government launched a INR 1 billion credit guarantee scheme to encourage financing backed by electronic negotiable warehouse receipts. Neither company has disclosed an expected launch date or initial deployment scale.