Arya.ag has launched a dedicated Avalanche-based blockchain to record grain deposits, warehouse receipts, and agricultural loan status across its $2 billion crop network. According to reports from crypto.news, the system records grain deposits, electronic warehouse receipts, and loan status, enabling authorized lenders to verify crops offered as collateral. Infosys co-founder Nandan Nilekani announced the project at the Global Fintech Festival in Mumbai on September 10. The $2 billion figure covers the estimated value of crops held across Arya.ag's warehouse network, though it does not represent the value of loans already recorded on the blockchain.
Three major banks are joining Arya.ag's dedicated blockchain network, though their identities remain undisclosed. As reported by crypto.news, Arya.ag facilitates approximately $1.3 billion in annual loans and directly issues around $230 million itself. The company reaches between 850,000 and 900,000 farmers through roughly 12,000 leased warehouses across 60% of India's districts. Storage generates 50% to 55% of company revenue, finance accounts for 25% to 30%, and commerce supplies the remaining share. Loans arranged through the platform carry interest rates of approximately 12.5% to 12.8%.
Arya.ag runs the dedicated layer-1 blockchain using technology developed by Ava Labs. According to crypto.news, the network is separate from Avalanche's primary public chains and can apply operating rules suited to banks, warehouses, and regulated lending records. Ava Labs India head Devika Mittal described it as a dedicated deployment that is expected to support other warehouse companies later. The system links grain records with agricultural loans, allowing banks to check whether grain exists, whether another lender has already accepted it as collateral, and how much debt remains outstanding. Farmers can receive electronic negotiable warehouse receipts (e-NWRs) to secure loans while keeping crops in storage.
The existing lending business operates under established legal frameworks, with India recognizing e-NWRs as instruments supporting loans against crops stored in regulated warehouses. As reported by crypto.news, Finternet is helping establish the operating framework through which lenders and warehouses communicate within the system. The BIS working paper published in April 2024 describes Finternet as connecting multiple financial ecosystems through shared technical and institutional standards. Arya.ag intends to admit other warehouse businesses, though it has not published an expansion schedule or announced a deadline for publishing onchain data showing recorded deposits, receipts, or loans.
The system does not transfer grain ownership or guarantee faster approvals and cheaper credit access, as reported by crypto.news. Claims that the system could produce faster approvals, lower costs, or greater access to credit remain potential outcomes that must be demonstrated during deployment. Arya.ag and Ava Labs have not disclosed financial terms between the companies or set a public target for moving a specific amount of collateral onto the network. The companies have not published transaction counts, network capacity, smart-contract addresses, or a blockchain explorer, with no date provided for opening the system to competing warehouse companies.
