Finternet Labs has announced a collaboration with blockchain platform Avalanche to develop token-based financial infrastructure in India, beginning with a pilot focused on enabling lending against farm-related assets. The initiative is designed to improve credit access for farmers and agriculture-linked businesses by leveraging blockchain technology to digitally represent and manage assets.
According to the companies, the project seeks to simplify how agricultural assets such as stored commodities or loan instruments are documented and used within financial systems. By converting these assets into digital representations on a blockchain network, they aim to make them easier to verify, transfer, and potentially use as collateral.
While detailed technical specifications have not been disclosed, similar blockchain-driven agricultural lending models have been explored globally. In such frameworks, a farmer storing wheat in a certified warehouse could have proof of ownership digitally recorded on a blockchain. That authenticated record could then be used to secure financing prior to the eventual sale of the crop. The pilot in India is expected to test comparable mechanisms adapted to local requirements.
The partners indicated that they plan to work closely with regulators and industry stakeholders to ensure that the infrastructure aligns with India’s legal and institutional framework. They emphasized that regulatory engagement would be central to building systems that are compliant, transparent, and suitable for domestic financial markets. Although the initial focus is on agriculture, the collaboration is also expected to examine broader applications in sectors such as finance, entertainment, and education.
Building a Foundation for Tokenized Finance
Finternet Labs was co-founded by Aadhaar architect Pramod Varma and Chief Executive Officer Siddharth Shetty, with support from technology industry veteran Nandan Nilekani. The organization has positioned itself at the intersection of digital public infrastructure and financial innovation.
Sanmesh Kalyanpur, Director of Programs at Finternet Labs, stated that the collaboration reflects a shared view that tokenization could serve as a foundational layer for the next phase of financial innovation in India. He explained that the partnership aims to demonstrate how global blockchain infrastructure can be tailored to local market conditions, potentially unlocking substantial economic opportunities.
Tokenization involves converting ownership rights in real-world assets into digital tokens that can be recorded and transferred on blockchain networks. Advocates argue that this approach can streamline documentation processes, reduce administrative burdens, accelerate settlement times, and create new avenues for capital formation. By digitizing asset ownership, stakeholders may gain improved transparency and more efficient access to financing mechanisms.
Global momentum around tokenized assets continues to grow. A report referenced by the companies, citing projections from Standard Chartered, estimated that the tokenized asset market could expand to $30 trillion by 2034. Data from mid-2025 indicated that the value of tokenized real-world assets had climbed to $24 billion, representing an 85 percent increase compared with the previous year. This growth has been largely attributed to rising demand for private credit products structured through blockchain-based systems.
India as a Strategic Blockchain Market
Ava Labs, the development firm behind Avalanche, identified India as a strategically important market for tokenized finance. Devika Mittal, South Asia Head at Ava Labs, stated that India holds significant potential for the future of blockchain-enabled financial systems. She explained that collaborations of this nature help connect emerging on-chain innovation with established financial frameworks in the real economy.
Beyond agriculture, blockchain adoption in India is expanding into other industries. Gurugram-based Mugafi, an artificial intelligence-driven platform specializing in entertainment intellectual property, recently partnered with Avalanche to tokenize media assets, including films, anime, and music. Through tokenization, creators can explore alternative funding models and distribution mechanisms powered by blockchain technology.
The Finternet-Avalanche initiative represents an effort to apply similar principles to agricultural finance, aiming to enhance liquidity and credit accessibility in one of India’s most vital economic sectors. By combining blockchain infrastructure with regulatory collaboration, the partners seek to lay the groundwork for scalable, token-based financial solutions tailored to local market dynamics.
