Arya.ag brings $2 billion in grain-backed loans onchain via Avalanche
Tech & Launches ·
India's largest agricultural warehousing platform is piloting a program with three banks to move grain-backed loans onto a dedicated blockchain built on Avalanche.
Arya.ag has partnered with Avalanche to tokenize roughly $2 billion in grain inventory and agricultural collateral, according to Coindesk. The arrangement uses a dedicated Layer 1 blockchain, built using Avalanche's L1 framework, which lets institutions deploy purpose-built chains that inherit the network's validator security while customizing gas tokens, fee structures, and privacy rules for their specific use case.
The pilot currently involves three banks, marking one of the larger real-world-asset deployments tied to Avalanche's push into regulated, institutional infrastructure. Rather than relying on a general-purpose smart contract chain, the grain-backed loan system runs on its own sovereign L1, an architecture that Avalanche has increasingly positioned for tokenized assets and settlement infrastructure requiring bespoke compliance rules.
The move fits a broader pattern of institutional adoption around Avalanche. Deloitte and Avalanche have jointly published a stablecoin playbook aimed at helping institutions navigate regulation and execution as stablecoins become core financial infrastructure. Separately, Bitwise Asset Management has listed an AVAX ETF on NYSE, giving institutional investors direct exposure and access to staking yields. Bitwise's chief investment officer has also said that stablecoins and tokenization are now drawing more advisor interest than Bitcoin, naming Avalanche among the networks positioned to benefit.
The Arya.ag arrangement is documented across multiple outlets tracking the story, with wublockchain.xyz also covering the development and additional background on Avalanche's architecture available via leviathan.news. AVAX, the network's native token, is used to pay transaction fees and as staking collateral, with a capped supply of 720 million tokens and burned fees creating a deflationary mechanic tied to usage.
Not yet detailed is the identity of the three participating banks, the timeline for scaling the pilot beyond its initial phase, or how loan performance and collateral verification will be audited onchain versus in traditional warehouse and banking systems. It also remains unclear whether the $2 billion figure represents total tokenized inventory value, loan volume, or both, and how quickly additional lenders might join the program if the pilot proves successful.