What Is Tokenisation of Real-World Assets?
Tokenisation means converting the ownership of a real-world asset — like gold, real estate, or government bonds — into digital tokens recorded on a blockchain. Under Asset Tokenisation Framework India, these tokens represent fractional ownership and can be traded or transferred securely, just like any digital investment.
Each token carries proof of ownership linked to the underlying physical or financial asset. For instance, ₹1,000 worth of gold could be represented as 1 digital token on a compliant platform. Tokenisation doesn’t create new assets — it digitises existing ones to make them more accessible, transparent, and liquid.
Globally, regulators are supporting tokenisation for greater financial inclusion. In India, the RBI, SEBI, and IFSCA are studying pilot frameworks for tokenised securities, gold, and carbon credits — signalling the start of a digital asset revolution grounded in compliance.
Insight: Tokenisation bridges the gap between physical assets and digital markets — enabling secure, fractional ownership.How Fintechs Are Bringing Tokenisation to India
Indian fintechs are now turning tokenisation into a mainstream investment tool. Under Fintech Blockchain Integration, startups are using permissioned blockchain systems to ensure compliance while offering users fractional access to high-value assets.
Examples of fintech-led tokenisation:
- Gold-backed tokens: Platforms like MMTC-PAMP and SafeGold are exploring blockchain-based gold certificates that users can trade or redeem.
- Real-estate tokenisation: Proptech fintechs allow investors to own a small portion of commercial real estate through digital tokens — making ₹10 lakh properties accessible for as little as ₹5,000.
- Government securities: RBI’s Digital Rupee pilot integrates with token-based settlement models for sovereign bonds.
- ESG and carbon credits: Emerging climate fintechs are tokenising carbon offsets to create transparent sustainability markets.
These innovations are built on smart contracts — self-executing blockchain rules that automate ownership transfer and compliance. Fintechs partner with custodians and regulated entities to ensure that every token is backed 1:1 by its real-world equivalent.
Tip: Tokenised assets don’t replace regulation — they work within it to make ownership simpler and smarter.Benefits and Challenges of Tokenising Real Assets
Tokenisation offers powerful advantages — but it also demands regulatory clarity and investor education. Under Regtech Compliance India, India’s regulators are balancing innovation with systemic safeguards.
Benefits for investors and fintechs:
- Fractional ownership: Enables small-ticket investment in gold, real estate, or corporate bonds.
- Improved liquidity: Tokenised assets can be traded instantly on compliant digital exchanges.
- Transparency: Blockchain ensures verifiable records of ownership and transaction history.
- Global participation: Tokenised assets open up cross-border investment opportunities under IFSCA’s sandbox model.
- Lower costs: Smart contracts automate verification and reduce middlemen fees.
Key challenges:
- Regulatory uncertainty: India’s framework for digital asset ownership and transfer is still evolving.
- Custody and audit: Each token must be securely backed by a verified real-world asset.
- Investor protection: Retail users must understand risks, volatility, and legal recourse.
- Interoperability: Standardising tokens across multiple blockchain platforms remains complex.
India’s fintech regulators have taken a cautious yet progressive approach — allowing innovation in sandboxes while preparing clear rules for full-scale rollout.
Insight: Tokenisation’s success depends not just on tech — but on trust, audits, and regulatory harmony.The Road Ahead for India’s Tokenised Economy
The next wave of fintech growth will come from digital asset infrastructure. Under Future Of Tokenised Assets, tokenisation could expand from niche pilots to mass-market adoption across lending, insurance, and trade finance.
Emerging trends shaping India’s tokenisation future:
- RBI’s DPIP integration: Tokenised settlement layers are expected to align with RBI’s Digital Payments Infrastructure Plan for interoperability.
- Retail investor access: SEBI is exploring regulated platforms for fractional ownership of tokenised mutual funds and debt securities.
- Tokenised deposits: Banks may issue blockchain-based deposit receipts under controlled pilots, reducing settlement risk.
- AI-led asset validation: Fintechs are integrating AI to verify asset authenticity before token issuance.
- Cross-border trade: IFSCA’s fintech hub in GIFT City is developing frameworks for global token exchanges linked to INR-based assets.
By 2027, tokenised assets could account for nearly $5 billion in India’s alternative investment market, according to Deloitte India. The shift from paper-based ownership to digital proofs represents not just technology adoption — but the democratisation of finance itself. Tip: In India’s fintech story, tokenisation could do for assets what UPI did for payments — make them truly inclusive. As regulation matures and trust deepens, tokenisation will turn India’s physical wealth into programmable, borderless financial opportunities — opening the door to a more connected digital economy. Frequently Asked Questions 1. What is tokenisation of real-world assets? It’s the process of converting physical or financial assets like gold, property, or bonds into digital tokens on a blockchain. 2. Is tokenisation legal in India? It’s being tested under regulatory sandboxes by RBI, SEBI, and IFSCA — with strict compliance and custody rules. 3. What are the benefits of tokenised investments? They offer fractional ownership, instant liquidity, transparency, and access to previously high-value assets. 4. Are tokenised assets the same as crypto? No. Tokenised assets represent real, regulated value — not speculative cryptocurrencies. 5. What’s the future of tokenisation in India? It’s expected to grow across gold, property, and bonds — supported by RBI and SEBI’s upcoming regulatory frameworks.