Arya.ag Tests Tokenized Grain Receipts on Avalanche
Arya.ag Initiates Blockchain Pilot for Grain Storage
Indian agricultural company Arya.ag is testing a system to digitize ownership records for grain stored in warehouses using the Avalanche blockchain. The pilot aims to create tokenized warehouse receipts that represent ownership of the stored commodities.
In collaboration with Finternet, Arya.ag is connecting data on grain deposits, warehouse receipts, collateral commitments, and loan status through the network. This shared record is intended to help lenders assess collateral risk more efficiently.
How the Tokenization System Works
- Each tokenized receipt will represent ownership of stored grain on the Avalanche layer-1 blockchain, a digital ledger that records transactions.
- Finternet combines farmer, commodity, warehouse, and insurance information into a "composite token" for banks to use in collateral risk assessment.
- The system depends on accurate verification of the physical grain represented by the digital records.
Statements from Ava Labs and Finternet Labs
Devika Mittal, head of India at Ava Labs, confirmed that testing is underway and that each tokenized receipt represents ownership of the stored commodity. She did not disclose a launch date or initial deployment size.
Sanmesh Kalyanpur, a director at Finternet Labs, explained that Arya.ag's samplers collect information about stored grain, which is entered into a portal. Finternet then combines this data with farmer, warehouse, and insurance details into a composite token for collateral risk assessment.
Background on Finternet and Avalanche Tokenization
The Finternet concept originated from a 2024 Bank for International Settlements paper co-authored by Nandan Nilekani and Agustín Carstens. The paper proposed interconnected ledgers for tokenized assets, emphasizing the need for supporting legal frameworks.
As of the end of 2025, tokenized real-world assets on Avalanche exceeded $1.3 billion, driven by loans and tokenized money-market funds.
Arya.ag's Current Business Scale
Arya.ag stores approximately $2 billion in agricultural commodities across its warehouse network. The company supports about 120 billion Indian rupees (approximately $1.26 billion) in loans annually, with its lending arm Arya Dhan issuing around $230 million in loans each year.
These figures represent existing business operations and do not indicate assets or loans already on the blockchain.
Pending Details and Verification Needs
The announcement does not specify a launch date for the tokenization system or the initial amount of grain and lending to be covered. Additionally, the system relies on accurate physical verification of the grain, which remains a critical factor.
In 2024, the Indian government launched a credit-guarantee program to encourage financing against electronic warehouse receipts, particularly for small farmers. This program provides context for the broader adoption of such systems.
Why This Matters for Agricultural Lending
Tokenizing warehouse receipts could streamline the process for farmers to borrow against stored grain without selling it immediately after harvest. Lenders gain a shared, transparent record of what grain is stored, who owns it, and whether it is already pledged as collateral, potentially reducing risk and improving access to credit.
