Finternet, Avalanche partner to test blockchain lending for farm assets
The move aims to make it easier for farmers and businesses connected to agriculture to access credit. The company is working on systems that allow assets such as loans or commodities to be digitally represented and traded more easily.
Although Finternet and Avalanche have not shared specifics, companies globally have tested blockchain-based agricultural lending models. To illustrate how such a system may work, a wheat farmer could store grain in a warehouse, have its ownership digitally recorded, and use that verified record to secure a loan before selling the crop.
The companies said they will work with regulators and industry participants to design systems suited to India’s legal and institutional environment. Beyond agriculture, they plan to explore use cases in areas including finance, entertainment and education.
Finternet Labs was co-created by Aadhaar architect Pramod Varma and Chief Executive Officer Siddharth Shetty, with backing from technology industry veteran Nandan Nilekani.
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“This collaboration reflects a shared belief that tokenisation can be a foundational layer for the next phase of India’s financial innovation,” said Sanmesh Kalyanpur, Director of Programs at Finternet Labs. “With this partnership, we aim to demonstrate how global blockchain infrastructure can be adapted to local market needs and unlock significant economic opportunities.”
Tokenisation refers to converting ownership of real-world assets into digital tokens that can be tracked and transferred using blockchain technology. Supporters say it can reduce paperwork, speed up transactions and open up new ways of raising money.
Global interest in tokenised assets is growing. A report cited by the companies, referencing Standard Chartered projections, estimates the market could reach $30 trillion by 2034. The value of tokenised real-world assets rose to $24 billion by June 2025, up 85% from a year earlier, driven largely by demand for private credit products.
Avalanche’s developer Ava Labs said India is expected to be a key market as financial institutions explore blockchain-based systems.
“India represents a key market for the future of tokenised finance. Collaborations like this help bridge the gap between emerging on-chain innovation and real-world financial systems,” said Devika Mittal, South Asia Head at Ava Labs.
Gurugram-based Mugafi, an artificial intelligence platform focused on entertainment intellectual property, recently partnered with Avalanche to convert films, anime, music and other media assets into digital tokens, enabling creators to raise funding and distribute projects using blockchain.
Edited by Jyoti Narayan
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