Arya.ag is building a blockchain-based system in India to track agricultural assets used as collateral for loans. Data on grain stored in warehouses will be recorded on Avalanche’s distributed ledger, allowing lenders to verify the existence and status of collateral, as well as the obligations associated with it.
Arya.ag, India’s largest AgriTech company, is working with Finternet Labs to deploy infrastructure for agricultural commodity-backed lending within the Avalanche blockchain ecosystem. The project involves 4 to 5 major lenders, including Singularity Credit and Arya Dhan.
Arya.ag manages more than $2 billion worth of agricultural commodities stored across more than 12,000 warehouses in India. Its existing infrastructure facilitates about $1.26 billion in lending annually, while its Arya Dhan unit independently issues about $230 million in loans each year.
According to industry media, the company is building a dedicated Layer 1 blockchain network on Avalanche. Other warehouse operators and financial institutions will be able to connect to the infrastructure in the future.
The system will consolidate the core information required for grain-backed lending:
- data on the owner and agricultural commodities;
- warehouse and insurance information;
- warehouse receipts and collateral status;
- information on the loan issued.
On-chain tools will allow lenders to confirm that the grain pledged as collateral exists, verify ownership, and determine whether it’s already securing another loan. This is expected to simplify collateral verification and make the lending process more transparent.
At the time of the announcement, the system was in testing. The timeline for a full-scale launch and the volume of assets to be moved on-chain during the initial phase weren’t disclosed. The new infrastructure is expected to speed up collateral verification and make it easier for farmers to secure financing against crops stored in warehouses.
It’s worth noting that in July 2026, Brazilian AgriTech company Cowmed, which specializes in digital livestock monitoring, completed the country’s first official lending transaction backed by tokenized cattle.
