India’s agricultural finance sector is taking a major step towards blockchain adoption as Arya.ag, the country’s largest agricultural warehousing company, moves around $2 billion worth of grain-backed loans and related records onto an Avalanche-based blockchain system. The project will tokenize loan status, warehouse receipts, and grain deposits, providing lenders with a common method to confirm the crops supporting loans.
Nandan Nilekani, a co-founder of Infosys, revealed the initiative during the Global Fintech Festival in Mumbai. Arya.ag will operate its own dedicated layer-1 blockchain and plans to eventually allow other warehouse companies and banks to join the network.
The idea addresses a fairly basic problem in agricultural lending. Instead of selling their products right once, farmers might borrow money against the grain they keep in a warehouse. However, data on the grain that has been stored, whether it has already been pledged as collateral, and the amount that is still owed can be dispersed throughout several systems.
For lenders, checking these records can take time and create uncertainty. Blockchain could bring the information onto a shared digital ledger, allowing authorised participants to view the same records and verify whether the collateral is genuine and available.
The system will use electronic negotiable warehouse receipts, or e-NWRs, which are already legally recognised in India for securing loans against stored agricultural commodities. Tokenization essentially adds a blockchain-based layer to the existing lending infrastructure rather than replacing the underlying legal framework.
BREAKING: India is bringing agricultural credit to Avalanche, unlocking a new layer of access for millions of farmers
Together with @finternet_org, Arya․ag is bringing agricultural financing infrastructure onchain, alongside 4-5 major lenders including Singularity Credit and… pic.twitter.com/5sb10u49SK
— Avalanche🔺 (@avax) September 10, 2026
Arya.ag is building a dedicated layer-1 blockchain using technology from Avalanche, the network created by Ava Labs. Arya will operate the blockchain initially, with plans to expand it to other warehouse companies. According to Ava Labs, three major banks are already joining the network, while other banks can also participate.
The scale of the operation is significant. Arya.ag currently holds around $2 billion worth of crops across its warehouses. Its existing business facilitates roughly $1.3 billion in loans each year, while its non-bank finance arm, Arya Dhan, directly provides about $230 million in loans annually.
The companies have not disclosed how much lending has already moved onto the blockchain or when the system will reach full scale. They have also not disclosed the financial terms of the arrangement with Ava Labs.
The larger objective is linked to India’s long-standing farm credit challenge. Despite making up a sizable portion of the population, farmers still have little access to official financing. Farmers may be able to acquire funds through warehouse-backed loans instead of selling their goods right away.
Arya.ag is now concentrating on improving the dependability and effectiveness of the loan infrastructure. Although the initiative has not yet shown these advantages at scale, faster approvals, reduced costs, and more access to finance are potential consequences.
Nevertheless, the project demonstrates how blockchain technology is evolving beyond financial trade and cryptocurrency. In this case, the technology is being tested against a very physical asset: grain sitting in warehouses and the loans backed by it. If the model works, tokenization could become a useful bridge between India’s agricultural supply chain and its formal financial system.
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