Indian Arya.ag to Move $2B in Agricultural Assets Onchain via Avalanche

Published: September 10, 2026 – 14:12 UTC

Indian company Arya.ag announced the launch of an Avalanche-based L1 network.
It will bring $2 billion worth of grain onchain.
In turn, Avalanche has landed another major financial use case since early September.

Indian agri-tech company Arya.ag, the country’s largest operator of agricultural warehouses, is launching its own Layer 1 blockchain built on Avalanche technology to tokenize grain, warehouse receipts, and loan status. The initiative was reported by CoinDesk, citing a statement by Infosys co-founder and Aadhaar project lead Nandan Nilekani at the Global Fintech Festival in Mumbai.

The system is intended to help banks and other lenders verify collateral for agricultural loans faster, while the value of grain stored in Arya.ag warehouses is estimated at around $2 billion.

How Avalanche Is Used for Agricultural Lending

When a farmer delivers grain to a warehouse, they can take out a loan secured by the crop instead of selling it immediately. The problem is that information about the volume of grain, its collateral status, and outstanding debt is often stored across different systems, making it harder for lenders to verify that the data matches.

Arya.ag wants to consolidate this information into a blockchain ledger accessible to warehouses, lenders, and other participants in the system. This should simplify the verification of assets used as loan collateral, although the company has not yet stated any specific impact on credit availability.

The statement notes that potential outcomes of the rollout could include “faster approvals, lower costs, or broader access to credit,” but these effects still need to be demonstrated once the system is scaled.

To that end, Arya.ag is building its own L1 on Avalanche technology and will operate the network itself. Over time, it plans to open it up to other warehouse companies, and banks can already connect to the system.

“L1 is run by Arya. It’s a dedicated deployment as of now, which will scale to support other warehouse companies as well,” said Devika Mittal, head of Ava Labs’ India unit.

She also added:

“To note that even now any bank can join, and three major banks are already joining the L1.”

The system is built around electronic negotiable warehouse receipts (e-NWR). These documents are already used in India and are legally recognized as collateral for bank loans backed by agricultural commodities.

Arya.ag issues part of its loans directly through its own non-banking financial company, Arya Dhan. Other loans are provided by banks and financial institutions, which use Arya.ag’s data to verify that the grain exists and that it has not previously been pledged as collateral to another lender.

According to information released as part of the announcement, Arya.ag stores agricultural commodities worth about $2 billion in its warehouses. In its traditional business, the company facilitates about $1.3 billion in loans each year, while Arya Dhan directly issues about $230 million in loans.

At the same time, the companies did not disclose how much lending or how many assets have already been migrated to the new blockchain system, nor did they provide a timeline for scaling it. The financial terms of the partnership with Ava Labs have also not been disclosed.

Arya.ag’s initiative is another example of Avalanche being used beyond the traditional cryptocurrency market. In early September 2026, it became known that Ethena Pay — a neobank from the issuer of the USDe stablecoin — had launched, using Avalanche as its operating infrastructure.

During the same period, Avalanche reported that its infrastructure was being used in another large-scale financial project — South Korea is preparing a phased transition of a significant portion of its capital market to an onchain format. South Korea’s Financial Services Commission and the Korea Securities Depository presented a plan to tokenize stocks, bonds, and funds, covering issuance, trading, clearing, settlement, and the exercise of investor rights. The launch is scheduled for 2027.

Сообщение Indian Arya.ag to Move $2B in Agricultural Assets Onchain via Avalanche появились сначала на INCRYPTED.

Source: Incrypted