Indian MP Advocates Tokenization as the Key to Owning "Expensive Assets" in 2025

• Why is Tokenization Gaining Traction in India?
• How Could Tokenization Benefit India's Middle Class?
• What Global Precedents Support Chadha's Proposal?
• Why is the RBI Cautious About Digital Assets?
• What Regulatory Framework Does India Need?
• FAQs: Tokenization and India's Digital Asset Future

Indian parliamentarian Raghav Chadha has called for a "tokenization law" to democratize access to high-value assets like real estate and infrastructure through fractional ownership. Drawing parallels to the success of UPI in digital payments, Chadha argues that tokenization could empower India's middle class. Meanwhile, the RBI warns of risks tied to stablecoins, highlighting the regulatory tightrope India must walk in embracing digital assets.

Why is Tokenization Gaining Traction in India?

During a Tuesday parliamentary session, Raghav Chadha—the youngest member of India's Rajya Sabha—made a compelling case for asset tokenization. He described it as a way to split high-value physical or intangible assets into smaller, tradable digital units. "Just as an individual can buy shares in a company, tokenization allows people to own fractions of real-world assets through digital tokens," Chadha explained. His proposal targets assets like commercial buildings, highways, and intellectual property—traditionally accessible only to wealthy investors.

How Could Tokenization Benefit India's Middle Class?

Chadha highlighted the limitations of current investment options for middle-class Indians: "Savings accounts, fixed deposits, and mutual funds are their primary choices. Commercial real estate is prohibitively expensive, infrastructure projects are out of reach, and private investments remain niche." He used Gold as an example—while 10 grams might cost ₹135,000, digital gold ETFs allow investments as small as ₹500. "Tokenization eliminates broker fees, property registry hassles, and reduces intermediary costs. It simplifies investing while securing retirement futures," he added.

What Global Precedents Support Chadha's Proposal?

The MP pointed to international models: the U.S. SEC's inclusion of tokenization in securities law, Singapore's Project Guardian, the EU's MiCA regulation, and the UAE's VIRTUAL Asset Regulatory Authority. "India has a cultural affinity for real estate and precious metals—70-80% of household wealth is parked there. We need tailored laws and regulatory sandboxes to make asset ownership inclusive," Chadha asserted. His vision aligns with India's digital payment revolution under UPI, which brought street vendors and rickshaw drivers into the formal economy.

Why is the RBI Cautious About Digital Assets?

While Chadha champions tokenization, Deputy RBI Governor T. Rabi Sankar recently cautioned against stablecoins, calling them "macroeconomic risks masquerading as innovation." Sankar argued they facilitate illicit payments, circumvent capital controls, and threaten currency stability without offering benefits beyond traditional fiat. This tension reflects India's broader dilemma—how to harness blockchain's potential while mitigating systemic risks in a $3.7 trillion economy.

What Regulatory Framework Does India Need?

Chadha concluded by emphasizing the need for clear legislation: "Tokenization only becomes inclusive when laws provide regulatory certainty." He proposed sandbox environments to test innovations safely. As global crypto markets mature—with bitcoin ETFs now managing over $50 billion worldwide—India's policy choices could determine whether it leads or lags in the tokenized future.

FAQs: Tokenization and India's Digital Asset Future

What is asset tokenization?

Tokenization converts physical or intangible assets into digital tokens on a blockchain, enabling fractional ownership and trading.

How does tokenization help small investors?

It allows participation in high-value assets with minimal capital (even ₹500), reduces intermediaries, and simplifies transactions.

Which countries regulate tokenized assets?

The U.S., EU, Singapore, and UAE have established frameworks, with approaches ranging from SEC oversight to dedicated crypto authorities.

Why is the RBI skeptical of stablecoins?

Central banks view privately issued stablecoins as threats to monetary policy, banking systems, and financial stability.