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Arya.ag to tokenize grain collateral on Avalanche for loan verification
The Indian agri warehouse operator will initially run the onchain system for its own warehouses and grain deposit records, with three major banks reportedly preparing to join.
Arya.ag, India's largest agricultural warehousing business, is moving grain-backed lending records onto the Avalanche blockchain to help lenders verify the crops pledged as collateral. CoinDesk reports the effort will tokenize grain deposits, warehouse receipts, and loan status so lenders can check the underlying collateral more reliably.
When farmers store grain in a warehouse, they can take out loans against the stored crop instead of selling it immediately. The current process can be slowed because records on what is stored, whether it has already been pledged, and how much remains owed are often kept in separate systems, making it harder for lenders to review everything before approving a loan.
According to CoinDesk, the initiative is set up so warehouses, lenders, and other approved parties can view shared records through a common digital ledger rather than relying on disconnected paperwork. The initial scope targets infrastructure improvements for warehouse-backed lending, rather than promising changes to credit availability, while potential benefits such as faster approvals and lower costs are expected to be evaluated as the system rolls out.
CoinDesk adds that the project was announced by Nandan Nilekani at the Global Fintech Festival in Mumbai, with a separate group called Finternet helping define how warehouses and lenders communicate within the system. Arya.ag holds about $2 billion in crops and facilitates roughly $1.3 billion in annual loans, though it has not disclosed how much activity is already onchain or when the system will scale.