Arya.ag tokenizes $2 billion in grain-backed loans on Avalanche blockchain

Indian agricultural warehousing giant Arya.ag has launched a dedicated Avalanche-based layer-1 blockchain to tokenize grain deposits, electronic warehouse receipts, and loan records. Announced by Infosys co-founder Nandan Nilekani on September 10, 2026, the system aims to streamline collateral verification for lenders. While Arya.ag holds $2 billion in crops and facilitates $1.3 billion in annual loans, the actual volume transitioned to the blockchain remains undisclosed as three major banks prepare to join.

Arya.ag blockchain tokenization system

• ▪Infosys co-founder Nandan Nilekani announced Arya.ag's blockchain project on September 10, 2026, at the Global Fintech Festival in Mumbai.
• ▪Arya.ag has deployed an Avalanche-based ledger to tokenize grain deposits, electronic negotiable warehouse receipts (e-NWRs), and agricultural loan status records.
• ▪Arya.ag's blockchain system does not transfer physical grain ownership or sell grain tokens to cryptocurrency traders.
• ▪The digital infrastructure group Finternet, proposed by Nandan Nilekani and Agustín Carstens, is establishing communication rules between warehouses and lenders within Arya.ag's system.

Agricultural warehouse lending infrastructure

• ▪Potential outcomes of Arya.ag's blockchain system, such as faster loan approvals, lower costs, or greater credit access, remain to be demonstrated during deployment.
• ▪Arya.ag's blockchain links deposited crop information with warehouse receipts and financing status to let lenders verify collateral and outstanding debt.
• ▪Farmers in India can secure loans using electronic negotiable warehouse receipts (e-NWRs) while keeping their crops stored in registered warehouses.

Avalanche L1 deployment

• ▪Arya.ag runs its dedicated layer-1 blockchain using technology developed by Ava Labs, separate from Avalanche's primary public chains.
• ▪The dedicated layer-1 blockchain is operated by Arya.ag and is designed to scale to support other warehouse companies in the future.
• ▪Public disclosures for Arya.ag's blockchain do not identify validator operators, transaction counts, network capacity, smart-contract addresses, or data correction procedures.

Bank participation in network

• ▪Three major unidentified banks are joining Arya.ag's dedicated Avalanche blockchain network.
• ▪Any bank can currently join Arya.ag's blockchain network, while access for competing warehouse operators is planned for a future expansion.

Arya.ag lending scale

• ▪Prior to the Avalanche deployment, Arya.ag's loan approvals could take less than five minutes, utilizing artificial intelligence, satellite crop monitoring, and sensor-equipped storage bags.
• ▪Arya.ag holds approximately $2 billion worth of crops across its Indian warehouse network.
• ▪Arya.ag facilitates roughly $1.3 billion in agricultural loans annually, with its non-bank finance subsidiary, Arya Dhan, directly issuing about $230 million.
• ▪Arya.ag reaches between 850,000 and 900,000 farmers through approximately 12,000 leased warehouses across 60% of India's districts.

India farm credit access challenges

• ▪Approximately 15% of India's farmers, who make up about 40% of the country's population, have access to formal credit.
• ▪Loans arranged through Arya.ag carry interest rates of 12.5% to 12.8%, compared to bank rates of 11% to 12% and commission agent rates of 24% to 36%.