Business Sandesh Indian Newspaper | Articles | Opinion Pieces | Research Studies | Findings & News | Sandesh News
In a significant push for financial inclusion, Aam Aadmi Party Member of Parliament Raghav Chadha urged the Indian government on December 16-17 to introduce a dedicated “Tokenization Bill” during a Rajya Sabha session. The proposal aims to enable blockchain-based fractional ownership of high-value assets, including real estate, infrastructure projects, and intellectual property, potentially democratizing access for middle-class investors.
What Is Asset Tokenization?
Tokenization converts ownership rights in physical assets into digital tokens on a blockchain. Each token represents a fractional share, allowing investors to buy small portions of expensive properties or projects without needing full capital outlay. Tokens could be traded on regulated platforms, offering liquidity similar to stocks.
Chadha compared it to the Unified Payments Interface (UPI), which revolutionized payments by lowering barriers, arguing tokenization could similarly transform investments.
Why Focus on Real Estate?
India’s real estate sector, valued at over $1 trillion and contributing significantly to GDP, remains inaccessible to most retail investors due to high costs, illiquidity, and opacity. Tokenization could:
* Lower entry barriers for premium assets
* Enhance liquidity and transparency via immutable blockchain records
* Unlock idle capital and attract domestic/foreign investment
* Provide better returns than traditional savings options
Early pilots in GIFT City (Gujarat) have tested regulated tokenized structures using platforms like Polygon.
Benefits and Industry Support
Supporters, including the India Blockchain Alliance, view the bill as essential for onshore innovation, preventing capital flight to jurisdictions like UAE or Singapore. It could include a regulatory sandbox for testing.
No bill has been tabled yet; it’s a parliamentary call for legislation. Key hurdles include complex land laws, state-level variations, token classification (securities?), dispute resolution, and SEBI/RBI oversight. Existing frameworks like SM-REITs cover some fractional ownership, but blockchain-specific rules lag.
If enacted with clarity, tokenization could reshape India’s property market, bridging traditional finance and blockchain for broader inclusion.
