home / blog / Tokenised Assets: Beyond Crypto in India

Share on linkedin Share on Facebook share on WhatsApp

Digital Finance & Regulation

Tokenised Assets: Beyond Crypto in India

Tokenization is no longer just about crypto. In India, regulated digital assets are reshaping how gold, bonds, and property ownership work on blockchain rails.

By Billcut Tutorial · November 17, 2025

tokenised assets India regulation 2025

What Are Tokenised Assets – and How They Differ from Crypto

When most people hear the word “token,” they still think of cryptocurrencies or NFTs. But in 2025, tokenisation has gone far beyond speculative coins. A tokenised asset is simply a digital version of something real — like gold, bonds, or property — represented securely on a blockchain.

According to Tokenisation Framework India, tokenisation converts ownership rights of real assets into digital tokens that can be transferred, divided, or traded easily. Unlike crypto, these tokens are issued under regulatory supervision and backed by real, verifiable value.

So while crypto runs on decentralised networks without oversight, tokenised assets operate within India’s regulated environment — where each transaction is traceable, consent-based, and linked to KYC-verified investors.

Insight: Tokenisation isn’t about virtual money — it’s about giving real assets digital mobility.

India’s Regulatory Approach to Tokenisation

The Reserve Bank of India (RBI) and SEBI are both cautiously encouraging tokenisation — but only under clear, permissioned frameworks. The goal is to capture blockchain’s transparency while keeping investor protection intact.

As outlined in Sebi Digital Securities Guidelines, SEBI now permits regulated platforms to issue tokenised securities backed by assets like government bonds and mutual fund units. Meanwhile, RBI’s regulatory sandbox allows banks to test digital asset settlement pilots using token-based systems instead of traditional ledgers.

Key features of India’s tokenisation policy:

  • Fully regulated environment: Tokens must represent tangible or financial assets — not speculative crypto.
  • KYC-backed investors: Every holder is verified through regulated intermediaries.
  • Custody controls: Assets are stored or managed by SEBI-registered custodians or banks.
  • Audit trails: Every token transfer is recorded and auditable in real time.

By linking tokenisation to compliance frameworks, India is ensuring blockchain adoption grows responsibly — not recklessly.

Tip: In India, every digital token must have a physical or financial asset behind it — or it’s not legal.

New Use Cases: Gold, Bonds, and Real Estate

Beyond crypto, India’s tokenisation story is being written by traditional assets. Gold-backed tokens are already available through regulated fintechs like MMTC-PAMP and Augmont, letting users buy fractional grams stored in RBI-licensed vaults.

Similarly, under Real Estate Tokenisation Models, developers and asset management firms are experimenting with property tokenisation. Instead of buying an entire flat, investors can own digital “fractions” of a property that earn rent or appreciation proportionally. These models use permissioned blockchains under SEBI’s Alternative Investment Fund (AIF) umbrella.

Another area gaining traction is tokenised government bonds. Fintechs are testing platforms that let retail investors buy and trade small-value G-Secs as digital tokens. These instruments combine the safety of sovereign bonds with the liquidity of a mutual fund.

Popular tokenisation use cases in India’s 2025 landscape:

  1. Gold tokens: Backed by RBI-registered vaults, tradeable anytime.
  2. Tokenised bonds: Retail-friendly digital G-Secs for low-risk investors.
  3. Fractional real estate: Shared ownership models for small investors.
  4. Carbon credits and green finance: Digitised ESG assets under RBI’s sustainability initiatives.
  5. ol>

    These real-world tokens are regulated, asset-backed, and traceable — proving tokenisation can thrive even without cryptocurrency hype.

    Insight: Tokenisation lets ₹1,000 investors access markets that once needed ₹10 lakh — from gold to property.

    The Road Ahead: Safer Digital Assets for Everyone

    While tokenised assets are gaining momentum, RBI and SEBI remain focused on risk management. Under Rbi Digital Asset Roadmap, regulators are building shared data networks between custodians, depositories, and exchanges — ensuring full visibility over how digital assets move.

    Industry experts predict that by 2026, tokenisation will merge with India’s digital ID and consent frameworks — combining Aadhaar-based KYC, Account Aggregator APIs, and real-time verification to make ownership transfers instant and paperless.

    What lies ahead for tokenised India:

    • Retail access to previously illiquid assets via digital platforms.
    • AI-driven valuation and transparency analytics.
    • Integration with CBDC for instant token settlement.
    • Cross-border token exchange within regulatory sandboxes.

    For users, tokenisation means simpler access to investments; for regulators, it means traceable finance; and for fintechs, it’s the next frontier of innovation beyond UPI and credit rails.

    Tip: India’s tokenisation model proves that digital assets can be safe, real, and regulation-friendly — all at once.

    As India builds its “trust-first” digital finance stack, tokenised assets could become the bridge between traditional wealth and tomorrow’s financial internet — backed by law, not hype.

    Frequently Asked Questions

    1. What are tokenised assets?

    They are digital representations of real-world assets like gold, real estate, or bonds, issued under regulated frameworks using blockchain.

    2. How are tokenised assets different from crypto?

    Unlike crypto, they are asset-backed, regulated, and traceable — each token represents a verified, tangible value.

    3. Is tokenisation legal in India?

    Yes, when done under RBI or SEBI supervision through licensed entities and compliant asset structures.

    4. Can individuals invest in tokenised assets?

    Yes. Retail investors can buy small-value fractions of gold, bonds, or property through approved platforms.

    5. What’s next for tokenisation in India?

    Integration with CBDC and AI-powered compliance systems for real-time settlement and transparent ownership records.

Are you still struggling with higher rate of interests on your credit card debts? Cut your bills with BillCut Today!

Get Started Now