Indian agricultural warehousing and lending company Arya.ag is testing a system to tokenize warehouse receipts for stored grain on a dedicated Avalanche layer-1 blockchain.
Arya.ag is working with Finternet to connect grain deposits, warehouse receipts, collateral commitments and loan status through the network.
Devika Mittal, Ava Labs’ head of India, told Cointelegraph that testing was underway and said each tokenized receipt would represent ownership of the stored commodity. The companies did not disclose an expected launch date or how much grain or lending the initial deployment would cover.
Sanmesh Kalyanpur, a director at Finternet Labs, said Arya.ag’s samplers collect information about stored grain and enter it into the company’s portal. Finternet will combine farmer, commodity, warehouse and insurance information into what Kalyanpur called a “composite token” that banks can use when assessing collateral risk.
Arya.ag stores about $2 billion in agricultural commodities across its warehouse network and supports approximately 120 billion Indian rupees (about $1.26 billion) in loans annually, according to the announcement. Its lending arm, Arya Dhan, issues about $230 million in loans each year.
The figures describe Arya.ag’s existing business and do not represent assets or loans already brought onchain.
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Finternet concept traces back to 2024 BIS paper
The Finternet concept was outlined in a 2024 Bank for International Settlements paper co-authored by Infosys co-founder Nandan Nilekani and then-BIS General Manager Agustín Carstens.
The paper proposed interconnected unified ledgers for tokenized assets while emphasizing the need for supporting legal and regulatory frameworks.
In January, Cointelegraph reported that the value of tokenized real-world assets on Avalanche exceeded $1.3 billion at the end of 2025, driven by loans and tokenized money-market funds.
India expands warehouse-backed agricultural lending
Electronic warehouse receipts allow farmers and agricultural businesses to borrow against commodities held in storage instead of selling them immediately after harvest.
Arya.ag and Ava Labs said their system is designed to give lenders a shared record showing what grain is stored, who owns it, whether it is already pledged as collateral and what debt is outstanding.
The system will still depend on accurate verification of the physical commodities represented by the digital records, according to the announcement.
In 2024, the Indian government launched a 10 billion-rupee credit-guarantee program intended to encourage financing against electronic negotiable warehouse receipts, particularly among small and marginal farmers.
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