Bringing India's Grain Economy Onchain

India's agritech firm Arya.ag and fintech infrastructure company Finternet are working together to bring more than $2 billion in grain reserves onto the @Avax blockchain. The initiative, announced in September 2026 at the Global Fintech Festival in Mumbai by Infosys co-founder Nandan Nilekani, targets one of the most persistent inefficiencies in Indian agriculture: slow, fragmented, and paper-heavy credit markets.

Arya.ag is one of India's largest agri-logistics and warehousing operators, currently managing over $2 billion in grain inventory across more than 12,000 warehouses nationwide. The company supports approximately $1.26 billion in loans annually, while its lending arm, Arya Dhan, issues around $230 million in loans each year.

Arya.ag is testing a system to tokenize warehouse receipts for stored grain on a dedicated Avalanche layer-1 blockchain. Finternet aggregates multiple types of data, covering the farmer, commodity, warehouse, and insurance details, into what its director Sanmesh Kalyanpur describes as a "composite token" that banks can use to assess collateral risk. Devika Mittal, Ava Labs' head of India, confirmed that testing is underway and that each tokenized receipt represents ownership of the stored commodity.

Tackling Fraud and Credit Delays for Farmers

When a farmer stores grain in a warehouse, they can borrow against it instead of selling immediately, but the records showing what is stored, whether it is already pledged as collateral, and how much is owed often sit in separate systems, making it slower for lenders to confirm details before approving a loan. The Avalanche-based infrastructure addresses this directly.

The shared records are designed to help banks verify that grain used as loan collateral exists and has not been pledged elsewhere. The project includes institutional lenders such as Singularity Credit and Aryadhan, using grain inventory as collateral. Ava Labs' Devika Mittal noted the dedicated L1 is run by Arya and will scale to support other warehouse companies, adding that three major banks are already joining the network.

Arya.ag is setting up its own dedicated layer-1 blockchain built using Avalanche technology, and plans to open it to other warehouse companies in the future. The Finternet concept itself traces back to a 2024 paper by the Bank for International Settlements, co-authored by Nandan Nilekani and then-BIS General Manager Agustín Carstens, proposing an interconnected unified ledger for tokenized assets. No formal launch date or initial deployment scale has been disclosed.

Sources
Cointelegraph: Arya.ag Tests Tokenized Grain Ownership Records on Avalanche
CoinDesk: Indian Agri Warehouse Giant Is Putting $2 Billion in Grain-Backed Loans Onchain
Crypto.news: Arya.ag Puts India's $2B Grain Network Onchain