Key facts
- Indian agricultural warehousing and lending company Arya.ag is piloting a system to tokenize warehouse receipts for stored grain on the Avalanche blockchain.
- The system is being developed in collaboration with Finternet.
- Each tokenized receipt will represent ownership of the stored commodity.
- The companies did not disclose an expected launch date or the initial scale of the deployment.
- Arya.ag stores approximately $2 billion in agricultural commodities and supports about $1.26 billion in loans annually.
- The Finternet concept was outlined in a 2024 Bank for International Settlements paper.
Indian agricultural firm Arya.ag is developing a system to tokenize warehouse receipts for stored grain on a dedicated Avalanche layer-1 blockchain, in partnership with Finternet. This initiative aims to create a unified digital record combining farmer, commodity, warehouse, insurance, and loan data, which can be used by lenders to assess collateral risk.
Each tokenized receipt will represent ownership of the physical commodity stored in a warehouse. While testing is currently underway, Arya.ag and Finternet have not yet disclosed a specific launch date or the initial scale of grain and lending that will be covered by the new system.
Arya.ag's existing business involves storing approximately $2 billion in agricultural commodities and supporting about $1.26 billion in annual loans. Its lending arm, Arya Dhan, issues around $230 million in loans each year. These figures represent the company's current operations and not assets already brought onto the blockchain.
The concept behind Finternet, which involves interconnected unified ledgers for tokenized assets, was previously 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 emphasized the necessity of supporting legal and regulatory frameworks for such systems.
In January, it was reported that the value of tokenized real-world assets on Avalanche had surpassed $1.3 billion by the end of 2025, largely driven by tokenized loans and money-market funds. Electronic warehouse receipts are designed to allow farmers and agricultural businesses to borrow against their stored commodities, providing an alternative to immediate post-harvest sales. The Indian government has also launched a 10 billion-rupee credit-guarantee program to encourage financing against electronic negotiable warehouse receipts, particularly for small and marginal farmers.