The proposal aims to expand investment opportunities beyond bank savings and mutual funds for India's middle class.
India Crypto News
Indian Member of Parliament Raghav Chadha has urged the government to introduce legislation enabling fractional ownership of real estate, infrastructure projects, and other high-value assets through digital tokens. The proposal aims to expand investment opportunities beyond bank savings and mutual funds for India's middle class.
Chadha told the Rajya Sabha on Tuesday that a tokenization bill could make investment and asset ownership inclusive, similar to how Unified Payments Interface democratized digital transactions. The framework would provide instant, broker-free liquidity for assets traditionally restricted to wealthy investors.
The MP said India needs bespoke legislation for asset tokenization alongside a dedicated regulatory sandbox to test new models safely. Such a framework would attract global capital flows from financial hubs including Singapore, the United Arab Emirates, and Hong Kong by providing legal clarity.
Raj Kapoor, founder and CEO of the India Blockchain Alliance, characterized the proposal as a strategic necessity for anchoring India in the next financial architecture. The absence of statutory frameworks risks Indian assets, startups, and capital formation migrating offshore into jurisdictions with clearer regulations.
Infrastructure, small and medium enterprises, real estate, carbon credits, gold, and receivables could receive India-native tokenization under the proposed legislation. Kapoor said jurisdictions providing legal clarity rapidly become magnets for global capital in the evolving digital asset landscape.
Musheer Ahmed, founder and managing director of Finstep Asia, said a tokenization bill would establish clear rules for financial institutions while opening high-value asset participation to the middle class. The legislation would place India alongside global leaders in next-generation financial innovation.
BlackRock CEO Larry Fink and COO Rob Goldstein wrote in The Economist that finance is entering the next major evolution in market infrastructure driven by blockchain-based tokenization. The executives compared the current stage to the internet in 1996, signaling significant institutional momentum.
Without clear statutory frameworks, India faces constraints from regulatory ambiguity around tokenized assets despite leadership in digital public infrastructure development. The proposed bill addresses economic sovereignty concerns by ensuring Indian assets are tokenized onshore under domestic law rather than through foreign jurisdictions using complex special purpose vehicles.
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