Overview
India’s Parliament is debating a new Tokenization Bill that could revolutionize access to real‑estate and other high‑value assets for the middle class. The proposal, championed by Member of Parliament Raghav Chadha, aims to allow fractional ownership through digital tokens, making investments more accessible and liquid.
Why Tokenization Matters
Chadha argues that tokenization could be a game‑changer for financial inclusion, similar to India’s Unified Payments Interface (UPI), which simplified everyday payments for millions. Currently, India’s middle class primarily relies on savings accounts, fixed deposits, and mutual funds, with limited exposure to assets that generate higher long‑term returns.
Fractional Ownership Benefits
Tokenization would enable ordinary investors to purchase small stakes in office buildings, highways, and other capital‑intensive projects, providing faster liquidity without the need for brokers or complex paperwork.
Current Initiatives
Early efforts are already underway in India’s GIFT City, where platforms like Tokeny and Terazo are building regulated tokenized real‑estate structures on public blockchains such as Polygon.
Regulatory Landscape
Regulators—including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI)—are proceeding with caution, emphasizing investor protection and settlement‑risk mitigation. Chadha calls for bespoke legislation and a regulatory sandbox to test new models under supervision.
State‑Level Efforts
Maharashtra is exploring a framework to unlock an estimated ₹50 trillion in idle capital by digitizing asset transfers, particularly in Mumbai’s real‑estate market.
Global Context
India currently lags behind the UAE, Singapore, Germany, Hong Kong, and the United States, which have adopted clearer legal standards for tokenization.
Criticisms & Challenges
While tokenization could lower investment thresholds, participation remains limited by income levels and financial literacy. Policymakers also face hurdles such as complex land titles, fragmented state laws, and data‑privacy concerns.
Future Outlook
If successful, the Tokenization Bill could unlock significant economic opportunities for India’s middle class, but a robust and inclusive regulatory framework will be essential to realize its full potential.
