India’s Arya.ag to put grain ownership records on Avalanche

Indian agricultural warehousing and lending company Arya.ag is testing a system to tokenize warehouse receipts for stored grain on a dedicated Avalanche layer-1 blockchain. 

Arya.ag is working with Finternet to connect grain deposits, warehouse receipts, collateral commitments and loan status through the network.

Devika Mittal, Ava Labs’ head of India, told Cointelegraph that testing was underway and said each tokenized receipt would represent ownership of the stored commodity. The companies did not disclose an expected launch date or how much grain or lending the initial deployment would cover.

Sanmesh Kalyanpur, a director at Finternet Labs, said Arya.ag’s samplers collect information about stored grain and enter it into the company’s portal. Finternet will combine farmer, commodity, warehouse and insurance information into what Kalyanpur called a “composite token” that banks can use when assessing collateral risk. 

Arya.ag stores about $2 billion in agricultural commodities across its warehouse network and supports approximately 120 billion Indian rupees (about $1.26 billion) in loans annually, according to the announcement. Its lending arm, Arya Dhan, issues about $230 million in loans each year.