Speaking in Parliament, Chadha compared the potential impact of tokenization to the success of UPI in digital payments. He said that just as UPI made payments inclusive for street vendors, shopkeepers, and small businesses, tokenization could make investments and ownership inclusive for ordinary citizens.
Why India Needs a Tokenization Law
Raghav Chadha said India needs a Tokenization Law to expand investment options for the middle class beyond savings, fixed deposits, and mutual funds. Asset tokenization can break high value assets like real estate and infrastructure into small digital units, enabling affordable and transparent ownership through blockchain.
He added that just as Gold ETFs made small gold investments possible, tokenization can give common investors access to premium assets, calling it one of the most important financial innovations of the twenty first century.
Global Examples Supporting Tokenization
Chadha pointed out that many developed economies have already recognized the importance of asset tokenization.
The United States has acknowledged tokenized securities under its securities framework
Singapore launched Project Guardian to support tokenized assets
The European Union introduced MiCA regulations to regulate crypto assets
The UAE established a dedicated Virtual Asset Regulatory Authority to oversee digital asset activities
These steps, he said, demonstrate how seriously global economies are embracing tokenization.
Why Tokenization Fits India Perfectly
India has a strong cultural preference for real estate and precious metals like gold and silver. Nearly 70 to 80 percent of household wealth in India is stored in these asset classes.
Tokenization directly addresses this preference by enabling fractional ownership of these assets through blockchain technology, making them accessible to a wider population.
Call for Regulatory Clarity and Sandbox
In his concluding remarks, Raghav Chadha urged the government to introduce a bespoke Asset Tokenization Law along with a regulatory sandbox. This would allow innovation to grow under proper supervision while protecting investors.
He added that clear regulations would attract global capital that currently flows to regions such as Singapore, UAE, Hong Kong, and the United States. With the right framework, India could become a global hub for asset tokenization and blockchain based investments.