Arya.ag Tests Tokenization System for Grain Storage on Avalanche

Arya.ag, an Indian agricultural warehousing and lending provider, is testing a tokenization system on Avalanche's dedicated layer-1 network. The pilot aims to turn electronic warehouse receipts for stored grain into transferable on-chain tokens.

Tokenized warehouse receipts would represent ownership of the stored commodity, helping lenders evaluate collateral risk. Each receipt would correspond to the commodity stored in the warehouse network.

The system is designed to provide lenders with a shared record covering what is stored, who owns it, whether it's already pledged, and what debt remains. However, accurate verification of physical commodities represented by digital records still depends on operational checks and sampling procedures.

Arya.ag stores about $2 billion in agricultural commodities across its warehouse network and supports roughly 120 billion Indian rupees (about $1.26 billion) in loans annually. The pilot focuses on improving shared transparency for lenders rather than expanding the scale of Arya.ag's existing loan book.