Indian Parliament Shakes Finance: MP Raghav Chadha’s Asset Tokenization Bill Could Revolutionize Markets

Forget dusty stock certificates and sluggish settlement times—a new legislative push in India aims to drag the country's financial infrastructure into the digital age.

### From Parliament to Blockchain Ledger

MP Raghav Chadha's proposed bill isn't just another piece of paper. It's a direct challenge to legacy systems, proposing to slice real-world assets—think real estate, commodities, even art—into digital tokens. This cuts out traditional middlemen, bypasses bureaucratic delays, and could unlock trillions in currently illiquid capital.

### The Liquidity Unlock

The core promise? Liquidity. Tokenization lets you own a fraction of a Mumbai high-rise or a rare vintage car, trading those shares on a digital marketplace with the ease of a crypto swap. It democratizes access to investment classes once reserved for the ultra-wealthy or institutional vaults. Of course, it also creates a shiny new playground for the same speculative fervor that turns meme coins into billion-dollar jokes.

### The Regulatory Tightrope

Success hinges on a framework that fosters innovation without becoming a wild west. The bill must navigate investor protection, define clear custody rules, and establish which regulatory body calls the shots. Get it right, and India positions itself as a global fintech leader. Get it wrong, and it's just another volatile asset class for finance bros to pump and dump.

This move signals a monumental shift. It's not just about adopting blockchain; it's about rewiring the very concept of asset ownership. The old guard is watching—and probably sweating into their silk pocket squares.

The proposal on financial inclusion

In his speech, Raghav Chadha spoke about the limitations that are presently available for the middle class as investors. He said, “A middle-class person today, if they want to invest, has options like a bank savings account, mutual funds, or fixed deposits. Beyond that, there are few options; commercial buildings are too expensive, infrastructure projects are out of their reach, and private asset classes are meant for niche investments.”

“If you look at what an investment means for a middle-class person, for a typical family that wants to save for their children’s education or their children’s marriage, that means that their investment options are limited,” Raghav added. 

To address this, Chadha introduced the concept of asset tokenization, which, according to him, is a “financial revolution that breaks down large, costly assets into smaller digital tokens, which can then be traded completely openly on a blockchain.”

He compared it to the stock market when he said, “Just as a common man can buy a share of a company and become a part owner and reap the benefits of appreciation and profit, asset tokenization will enable real-world assets like real estate projects, infra projects, commodities, and IPR to be split into small digital tokens.”

Benefits to the common man

Raghav Chadha listed various advantages for the Indian public, and the significance of minimizing the initial entry costs was emphasized. He likened this to the development of digital Gold bullion, saying that buying a small volume of physical gold is not possible, but digital gold will enable people to start investing from an outlay of 500 rupees.

As per the MP, some of the main advantages of this legislation would include increased returns on investment as well as a secured retirement for the middle-class citizen. The legislation would also ensure instant liquidity for those assets, which are generally difficult to liquidate, such as real estate properties. This would be possible using the technology of blockchain, which will help remove the middlemen for the purchase of properties, such as real estate brokers, resulting in “registration hassles.”

Chadha also indicated that “mature global economies have already commenced the process of legalizing and regulating such financial instruments.” These are the examples given by Chadha of regulating such VIRTUAL currencies, such as the inclusion of “tokenization in the Securities Act of the United States SEC, Singapore’s ‘Project Guardian,’ the EU’s Markets in Crypto-Assets (MiCA) Regulation, and the UAE’s creation of the Virtual Asset Regulatory Authority (VARA).”

Sumit Gupta, co-founder of CoinDCX, which is one of India’s leading crypto exchanges, also noted that the country needs serious policy frameworks. “Sandbox regulations, tax clarity, investor protection that let blockchain-enabled tokenization unlock India’s illiquid wealth while keeping the ecosystem safe,” Sumit said. 

Agree with the sentiments shared by Raghav Chadha!

UPI = democracy of payments.
Tokenization = democracy of assets.

Digital India's next revolution: fractionalizing real estate, gold, securities & more for the masses.

We need serious policy frameworks: sandbox regulations,… https://t.co/Ugy1sxrEKc

India’s effort toward crypto regulation

India now ranks ninth globally in crypto transactional use, driven by a strong retail base and stablecoin adoption for remittances. Furthermore, the Gujarat National Law University (GNLU) has initiated national consultations with legal experts and industry stakeholders to draft a secure, evidence-based regulatory framework.

Industry leaders like Polygon’s Aishwary Gupta emphasize that while UPI dominates domestic retail payments, a compliant INR-backed stablecoin, such as Project ARC, is essential for unlocking programmable money and efficient cross-border flows. Together, these developments suggest that India is moving toward a pivotal phase where structured policy and financial tools could change it into a regulated, global digital finance hub.

The advantage of Indians in terms of cultural affinity is that they have a natural affinity for physical assets. This is because 70-80% of their overall wealth has traditionally been in the FORM of property and precious metals.

This is exactly what tokenization provides. Warning that without “bespoke legislation,” or what amounts to a “regulatory sandbox,” India can “lose out on global capital,” the MP said that by providing this clarity through legislation, global investments that now go to countries like Singapore, Hong Kong, or the US can now come to India. 

During the concluding remarks, Chadha emphasized that tokenization is the single most important factor that makes investment and ownership possible for the common man. He asked the government to MOVE forward at a fast clip to make India a leader in this revolutionary financial innovation of the 21st century.

Also Read: India Ranks Among Top Countries in Global Crypto Transactional Use