India’s Agri. warehouse giant to tokenize $2 billion in grain-backed loans to stop agricultural fraud
Arya.ag is using Avalanche technology to tokenize grain deposits to help lenders verify crops backing agricultural loans. This company alone holds approximately $2 billion worth of crops across its warehouses. And they have business facilities of $1.3 billion in agricultural loans annually. So farmers borrow against their stored grain instead of having to immediately sell their crops. But the problem is that it’s very hard for banks and 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. So agricultural fraud in loans apparently is exceptionally easy. Well, this is a very sensible use for blockchain, to use tokenization without any of the hype to actually provide a transparent ledger on what the warehouse has and the loans that they’ve taken.
#Tokenization #Avalanche #India #Crypto #RWA
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