India moves to use tokenization to track grain-backed loans

00:00 Speaker A

India, blockchain is being used to track something much more tangible.

00:04 Speaker A

Grain sitting inside warehouses. Now listen, this doesn’t sound like a big story. It sounds weird, right?

00:09 Speaker A

Indian Agra Warehouse. I’ve never heard them shorten agriculture.

00:15 Speaker A

Agra.

00:16 Speaker A

Such a DJ name.

00:19 Speaker A

Indian Agra. Warehouse giant is putting two billion in grain back loans on chain.

00:24 Speaker A

Arya.AG is using avalanche technology. Good for you guys. To tokenize grain deposits to help lenders verify crops backing our uh agricultural loans.

00:32 Speaker A

Listen, this is an industry I know nothing about, but as I dug into it, it’s really, really interesting because

00:38 Speaker A

this company alone, Arya holds approximately two billion worth of crops across its warehouses.

00:44 Speaker A

And they have business facilities of $1.3 billion in agricultural loans annually. So farmers

00:50 Speaker A

they borrow against their stored grain instead of having to immediately sell their crops, right?

00:52 Speaker A

So that’s what this basically is providing for.

00:54 Speaker A

But the problem is that it’s very hard for the banks and the lenders to verify that the same collateral is not being used for loans multiple times. Like, who’s going in there to see how much grain you have, where it’s warehoused, what the state of it is, and that you haven’t already taken a loan against this.

01:05 Speaker A

So agricultural fraud in loans apparently is exceptionally easy.

01:09 Speaker A

Well, this is a very sensible use for blockchain,

01:12 Speaker A

which is to, uh, you know, use tokenization without any of the hype to actually provide a transparent ledger

01:19 Speaker A

on what the warehouse has and the loans that they’ve taken.

01:21 Speaker A

So this is yet just another uh great example of the way that crypto is being used by real industries in real time every single day.

01:31 Speaker A

And if this works, uh we’re going to see a lot more of it.

01:34 Speaker A

It’s interesting that crypto has finally discovered an asset uh with an actual year yield. It’s it’s wheat.