Indian MP Advocates Tokenization as the Key to Owning "Overpriced Assets" in 2025
- Why is an Indian MP pushing for asset tokenization legislation?
- How would tokenization work for everyday investors?
- Which countries is India looking to for tokenization precedents?
- What regulatory hurdles does tokenization face?
- Could tokenization really democratize Indian investments?
- FAQs
In a bold MOVE to democratize investment opportunities, Indian MP Raghav Chadha has championed asset tokenization as a solution for middle-class citizens to own fractions of high-value assets like real estate and intellectual property. Drawing parallels to India's UPI payment revolution, Chadha argues that tokenization could break down financial barriers—but not without regulatory challenges and skepticism from central banks.
Why is an Indian MP pushing for asset tokenization legislation?
During a December 2025 parliamentary session, Raghav Chadha—the youngest member of India's Rajya Sabha—presented a compelling case for asset tokenization. He highlighted how commercial properties, infrastructure projects, and private equity remain inaccessible to average investors. "Tokenization lets us split physical or intellectual assets into digital units," Chadha explained, comparing it to buying company shares. "Just as UPI transformed digital payments, this could revolutionize asset ownership." His proposal comes as 70-80% of Indian household wealth remains locked in real estate and gold.
How would tokenization work for everyday investors?
Chadha illustrated the concept using gold as an example: while 10 grams might cost ₹135,000, tokenized gold ETFs allow purchases as small as ₹500. "No brokerage fees, no paperwork, no shady real estate agents—just seamless buying and selling," he told Parliament. The Aam Aadmi Party member envisions a system where tokenized assets (from office buildings to highways) trade like stocks, with profits distributed proportionally. Industry analysts at BTCC note this mirrors fractional ownership models gaining traction in US and EU markets.
Which countries is India looking to for tokenization precedents?
Chadha cited three global benchmarks:
- The US SEC's securities framework incorporating tokenized assets
- EU's Markets in Crypto-Assets (MiCA) regulation
- UAE's Virtual Asset Regulatory Authority
What regulatory hurdles does tokenization face?
While Chadha proposed an "experimental regulatory sandbox," Reserve Bank of India deputy governor T. Rabi Sankar voiced concerns about stablecoins' macroeconomic risks. "They facilitate illicit payments and threaten monetary stability without offering benefits over fiat currency," Sankar warned last week. This tension reflects broader debates—as CoinMarketCap reports, 43% of central banks now research tokenization while maintaining caution.
Could tokenization really democratize Indian investments?
Chadha's vision hinges on legislation providing clarity. Currently, middle-class options are limited to savings accounts, fixed deposits, and mutual funds. "Tokenization must become inclusive through transparent laws," he concluded. The proposal arrives as India's digital rupee pilot enters its third year, suggesting growing institutional comfort with blockchain applications. However, as BTCC analysts caution, implementation requires balancing innovation with consumer protections—a challenge every adopting nation has faced.
FAQs
What is asset tokenization?
Asset tokenization converts physical or intellectual property into digital tokens representing fractional ownership, enabling trading on blockchain platforms.
How does tokenization help small investors?
By dividing expensive assets into affordable units, tokenization allows participation in markets traditionally reserved for wealthy individuals or institutions.
Why is RBI cautious about crypto assets?
The Reserve Bank of India cites concerns over monetary policy disruption, capital control evasion, and systemic risks to traditional banking systems.
