Indian MP Advocates Asset Tokenization as Key to Democratizing High-Value Investments in 2025

• Tokenization: India's Path to Inclusive Investment?
• Global Precedents: Why India Can't Afford to Wait
• Central Bank Concerns: The Stablecoin Dilemma
• The Road Ahead for India's Digital Asset Future
• FAQs About India's Tokenization Proposal

In a bold MOVE to democratize wealth, Indian MP Raghav Chadha has proposed groundbreaking legislation to enable fractional ownership of premium assets through tokenization. This initiative could revolutionize how India's middle class invests in real estate, infrastructure, and intellectual property. While the Reserve Bank of India remains cautious about stablecoins, the global trend toward digital asset adoption continues to gain momentum.

Tokenization: India's Path to Inclusive Investment?

During a recent parliamentary session, Raghav Chadha, the youngest member of India's Rajya Sabha, made a compelling case for asset tokenization. Drawing parallels to how UPI transformed digital payments, Chadha argued that tokenization could similarly revolutionize asset ownership. "Why should commercial buildings, infrastructure projects, and premium assets remain exclusive to the wealthy?" he questioned, proposing a system where Indians could own fractions of high-value assets through digital tokens.

The AAP party member illustrated his point with gold investments: "While 10 grams of gold costs ₹135,000, tokenization WOULD let someone invest just ₹500. No brokerage fees, no property registration hassles - just simple, accessible investing." His vision extends beyond precious metals to include real estate and infrastructure projects traditionally out of reach for average citizens.

Global Precedents: Why India Can't Afford to Wait

Chadha pointed to successful tokenization models abroad to bolster his argument. The U.S. SEC has integrated tokenization into securities law, Singapore launched Project Guardian, and the EU established MiCA regulations. Even the UAE created a dedicated VIRTUAL Asset Regulatory Authority. "With 70-80% of Indian household wealth tied up in real estate and gold," Chadha noted, "we're perfectly positioned to benefit from similar frameworks."

The MP emphasized India's cultural affinity for tangible assets makes tokenization particularly relevant. "We need bespoke legislation that creates a secure regulatory environment," he stated, concluding his address with a call for urgent action to prevent India from falling behind in the digital asset revolution.

Central Bank Concerns: The Stablecoin Dilemma

While Chadha champions tokenization, RBI Deputy Governor T. Rabi Sankar recently voiced concerns about stablecoins, calling them unnecessary risks to monetary stability. "Beyond facilitating illicit payments," Sankar warned, "stablecoins threaten fiscal policy, banking intermediation, and systemic resilience." This cautious stance has somewhat isolated India from jurisdictions like Japan and the EU that are embracing digital assets.

The contrast between Chadha's progressive vision and the RBI's conservative position highlights India's ongoing debate about digital assets. As BTCC market analyst Raj Patel observes, "India faces the classic innovation-regulation tension. The solution lies in balanced frameworks that enable progress while managing risks."

The Road Ahead for India's Digital Asset Future

Chadha's proposal comes at a pivotal moment. With global crypto markets maturing and institutional adoption growing, India must decide whether to lead or follow. The tokenization bill could potentially unlock trillions in dormant asset value while creating new investment avenues for millions. However, as with any financial innovation, the devil will be in the regulatory details.

Industry experts suggest watching three key developments: parliamentary debate outcomes, RBI's stance on related technologies, and private sector pilot projects. As CoinMarketCap data shows, tokenized real estate alone has grown 400% globally since 2023 - a trend India might join if Chadha's vision becomes reality.

FAQs About India's Tokenization Proposal

What is asset tokenization?

Asset tokenization converts physical or intellectual property into digital tokens representing fractional ownership, enabling smaller investors to participate in premium asset markets.

How would tokenization help Indian investors?

It would allow investment in high-value assets with small amounts (as little as ₹500), reduce intermediary costs, and simplify processes like property registration.

Why is the RBI concerned about stablecoins?

The central bank believes stablecoins could undermine monetary policy, enable illicit flows, and create systemic risks without offering benefits beyond traditional fiat currency.

Which countries have successfully implemented asset tokenization?

The U.S., Singapore, EU nations, and UAE have established regulatory frameworks allowing various forms of asset tokenization with growing adoption rates.

What assets could be tokenized in India?

Potential candidates include real estate, infrastructure projects, gold, and intellectual property - assets representing most Indian household wealth.