Arya.ag is trialling blockchain-based tokenised grain warehouse receipts on Avalanche, aiming to streamline crop collateral verification and reduce fraud in India’s vast agricultural lending sector, potentially transforming rural credit transparency.
Arya.ag is testing tokenised grain warehouse receipts on the Avalanche blockchain, in a move that could make it easier for banks to verify crop collateral in India’s agricultural lending market. The project links storage data, receipts, collateral commitments and loan status through digital records, with each tokenised receipt representing ownership of stored grain.
The company’s network spans about $2 billion of agricultural commodities held across its warehouses, according to reports from CoinArticle, FinanceFeeds and Cointelegraph Español. That figure refers to stored crops that can be used as collateral, not loans already recorded on-chain. Arya.ag also handles roughly ₹1.2 trillion in annual lending activity, while its Arya Dhan arm reportedly disburses about $230 million a year.
The initiative is being developed with Finternet and Avalanche, and the firms say it is designed to reduce collateral fraud and simplify bank verification. KuCoin’s coverage said Finternet plans to build a “composite token” that would combine farmer, commodity and insurance data to help lenders assess risk more quickly. The same report said the project builds on a 2024 paper by Nandan Nilekani and Agustín Carstens, as well as a ₹10 billion Indian government credit guarantee for digital receipts introduced that year.
For now, the effort remains a test rather than a full rollout. FinanceFeeds said as many as three major banks are expected to take part, although none has been named publicly. The wider bet is that turning warehouse receipts into digital assets could bring more transparency to rural credit, where lenders often face difficulties checking whether the same crop has been pledged more than once.
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