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, in a move aimed at giving lenders a shared, verifiable record of commodity ownership and outstanding debt.
The company is partnering with Finternet to connect grain deposits, warehouse receipts, collateral commitments and loan status across the network. Devika Mittal, Ava Labs' head of India, confirmed that testing is underway and said each tokenized receipt would represent ownership of the stored commodity. The companies did not disclose a launch date or the scale of the initial deployment.
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 then combine farmer, commodity, warehouse and insurance data into what Kalyanpur described as a "composite token" that banks can use when assessing collateral risk.
Arya.ag says it stores roughly $2 billion in agricultural commodities across its warehouse network and supports approximately 120 billion Indian rupees (about $1.26 billion) in loans annually. Its lending arm, Arya Dhan, issues about $230 million in loans each year. Those figures describe the company's existing on-book business and do not reflect assets or loans already brought onchain.
Electronic warehouse receipts allow farmers and agribusinesses to borrow against commodities held in storage rather than selling immediately after harvest. Arya.ag and Ava Labs said their system is designed to give lenders visibility into what grain is stored, who owns it, whether it has already been pledged as collateral and how much debt remains outstanding. The announcement acknowledged that the system would still depend on accurate verification of the physical commodities backing the digital records.
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, providing a policy tailwind for the kind of infrastructure Arya.ag is building.
The broader Finternet concept traces back to a 2024 Bank for International Settlements paper co-authored by Infosys co-founder Nandan Nilekani and then-BIS General Manager Agustín Carstens, which proposed interconnected unified ledgers for tokenized assets while emphasizing the need for supporting legal and regulatory frameworks.
Avalanche has seen growing real-world asset tokenization activity: at the end of 2025, the value of tokenized RWA on the network exceeded $1.3 billion, driven largely by loans and tokenized money-market funds.
