Indian agri warehouse giant is putting $2 billion in grain-backed loans onchain

Indian warehouse operator Arya.ag is moving roughly $2 billion worth of grain-backed loans onto a blockchain by converting physical grain deposits into digital tokens. The project uses Avalanche technology to represent stored grain as onchain tokens that correspond to the underlying commodity held in Arya.ag’s warehouses.

Under the initiative, tokenized grain deposits serve as verifiable digital collateral for agricultural loans. Lenders can use the tokens to confirm that the crops exist and are pledged against specific loans, rather than relying solely on traditional paper-based warehouse receipts or manual inspections.

Arya.ag, described as an agri-warehouse giant in India, is positioning the tokenization effort as a way to link physical inventory with digital records. By recording tokenized claims on Avalanche, the system creates an auditable ledger of which crops back particular loans and where those deposits are held.

The move is framed around improving verification for lenders and enhancing the traceability of collateral in agricultural finance. By making deposits digitally reportable and verifiable, the initiative aims to reduce uncertainty around grain-backed lending and provide a clearer record of the assets securing loans.