- MP Raghav Chadha proposes ‘Tokenization Bill’ to enable fractional ownership of high-value assets.
- Legislation aims to unlock commercial real estate and infrastructure for middle-class investors.
- Proposal calls for a regulatory sandbox to compete with RWA hubs like Singapore and Hong Kong.
India’s Parliament opened a critical debate on the future of asset ownership when Member of Parliament Raghav Chadha formally urged the government to introduce a dedicated Tokenization Bill. The proposal aims to use blockchain technology to democratize access to high-value assets for the country’s middle-income households.
Chadha’s pitch centers on fractionalization, converting expensive physical assets like commercial real estate, infrastructure projects, and intellectual property into digital tokens. This mechanism allows investors to buy small, affordable portions of assets that were previously accessible only to the ultra-wealthy or large institutions.
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Breaking the ‘High Net Worth’ Barrier
India’s middle class relies heavily on savings accounts, fixed deposits, and mutual funds. However, these options often deliver limited exposure to high-growth assets.
Hence, the tokenization proposal highlights a gap in the current financial system. By enabling fractional ownership, digital tokens could allow households to participate in assets once reserved for institutions.
Additionally, tokenized assets could offer faster liquidity compared to conventional property or infrastructure investments. Investors would not need brokers or lengthy settlement periods.
Moreover, transparent digital records could improve trust and reduce transaction costs. Supporters argue this model aligns with India’s broader push toward financial democratization.
Regulatory Clarity and Global Capital Considerations
Chadha emphasized the need for tailored legislation rather than adapting existing laws. According to his remarks, India requires a clear legal framework and a regulatory sandbox. Such measures could allow controlled experimentation while protecting investors. Consequently, policymakers could observe risks before large-scale adoption.
Besides domestic inclusion, the proposal also carries international implications. Clear rules on asset tokenization could attract global capital seeking regulated markets. Financial hubs like Singapore, the UAE, and Hong Kong already explore similar frameworks. Therefore, India risks falling behind without decisive policy action.
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Source: https://coinedition.com/india-moves-toward-rwa-adoption-as-mp-proposes-tokenization-bill/
