Arya.ag tests tokenized grain ownership records on Avalanche

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 on the system. Finternet will connect grain deposits, warehouse receipts, collateral commitments and loan status through the network. Devika Mittal, Ava Labs' head of India, said testing was underway. Mittal said each tokenized receipt would represent ownership of the stored commodity. Sanmesh Kalyanpur, a director at Finternet Labs, said Arya.ag's samplers collect information about stored grain. The samplers enter that information into Arya.ag's portal. Kalyanpur said Finternet will combine farmer, commodity, warehouse and insurance information into a composite token. Banks can use the composite token to assess collateral risk. The companies have not disclosed a launch date. They have not disclosed how much grain or lending the initial deployment would cover. Arya.ag stores about $2 billion in agricultural commodities across its warehouse network. Arya.ag supports approximately 120 billion Indian rupees in loans annually. That amount is about $1.26 billion. Arya Dhan issues about $230 million in loans each year. These figures describe Arya.ag's existing business. They do not represent assets or loans already brought onchain. A 2024 Bank for International Settlements paper outlined the Finternet concept. Infosys co-founder Nandan Nilekani and then-BIS General Manager Agustín Carstens co-authored the paper. The paper proposed interconnected unified ledgers for tokenized assets. It also emphasized supporting legal and regulatory frameworks. Tokenized real-world assets on Avalanche exceeded $1.3 billion at the end of 2025. Electronic warehouse receipts allow borrowers to use stored commodities as collateral instead of selling them immediately after harvest. Arya.ag and Ava Labs said the system is designed to give lenders a shared record of stored grain. The record will show who owns the grain. It will show whether the grain is already pledged as collateral. It will show the outstanding debt. The system will depend on accurate verification of the physical commodities represented by the digital records. The Indian government launched a 10 billion-rupee credit-guarantee program in 2024. The program was intended to encourage financing against electronic negotiable warehouse receipts, particularly for small and marginal farmers.