India's Arya.ag Trials Tokenized Grain Receipts on Avalanche Blockchain

Tokenizing Grain Ownership on Avalanche Blockchain

Arya.ag, in partnership with Finternet, is developing a blockchain-based system to tokenize warehouse receipts evidencing ownership of stored grain. Operating on Avalanche, the platform aims to integrate data on grain deposits, warehouse receipts, collateral commitments, and loan statuses into a unified digital ledger.

Devika Mittal, head of Ava Labs India, confirmed to Cointelegraph that testing is underway. Each tokenized receipt will symbolize ownership of a specific stored commodity batch, delivering transparency and legal clarity over the asset. However, the companies have not announced an official launch date nor the initial scale of tokenized grain or lending covered by deployment.

Finternet’s Composite Token Concept

Finternet Labs director Sanmesh Kalyanpur described Arya.ag’s process where samplers analyze grain quality and input data into the company’s portal. Finternet then amalgamates farmer details, commodity specifics, warehouse info, and insurance into a ‘composite token’. This token becomes a comprehensive digital representation banks can utilize to accurately assess collateral risk during lending decisions.

Arya.ag's Business Scale and Blockchain Integration

Arya.ag’s warehouse network secures agricultural commodities worth approximately $2 billion, while the firm facilitates loans amounting to roughly 120 billion Indian rupees (around $1.26 billion) per year. Its lending arm, Arya Dhan, issues about $230 million in loans annually. These figures reflect Arya.ag’s existing off-chain operations and do not indicate that such assets or loans have already been tokenized on-chain.

Origins of Finternet and Regulatory Context

The Finternet model traces back to a 2024 Bank for International Settlements (BIS) paper co-authored by Infosys co-founder Nandan Nilekani and former BIS General Manager Agustín Carstens. The paper proposed interconnected unified ledgers for tokenized real-world assets, stressing the necessity of supportive legal and regulatory frameworks to enable such systems.

In early 2026, reports highlighted that tokenized real-world assets on Avalanche had surpassed $1.3 billion in value, propelled by loans and tokenized money-market funds.

Growth of Warehouse-Backed Agricultural Lending in India

Electronic warehouse receipts provide farmers and agribusinesses a mechanism to borrow funds secured by their stored commodities, avoiding the need for immediate sale post-harvest. Arya.ag and Ava Labs’ system intends to offer lenders a clear, shared ledger recording stored grain volumes, owners, existing collateral pledges, and outstanding debt amounts.

The system’s efficacy still depends on accurate and reliable verification of physical commodities corresponding to these digital records. In 2024, the Indian government launched a 10 billion-rupee credit guarantee scheme to encourage financing against electronic negotiable warehouse receipts, focusing particularly on small and marginal farmers.