AAP MP Raghav Chadha made a compelling case in Parliament for an urgent Asset Tokenisation Bill, positioning it as India’s next “UPI moment” to democratize high-value investments for the middle class. He argued that just as UPI empowered street vendors and rickshaw pullers to handle digital payments seamlessly, tokenisation could unlock fractional ownership of real estate, infrastructure, and commodities through blockchain, making these assets accessible to everyday Indians.
Chadha’s Pitch for Financial Inclusion
Chadha said middle-class families today face starkly limited choices: bank savings accounts, mutual funds, or fixed deposits offer safety but meager returns, while commercial buildings, infrastructure projects, and private assets stay locked behind massive entry barriers. He described tokenisation as a “financial revolution of the 21st century” that shatters large, indivisible assets into small digital tokens on blockchain. These tokens represent true part-ownership, tradable like stocks, allowing anyone to buy in with modest sums and reap proportional gains from appreciation or income.
He explained that real-world assets like office towers, toll roads, solar farms, data centers, commodities, and even intellectual property rights (IPRs) get digitized into tokens. Investors could then trade them on regulated platforms, enjoying transparency, instant settlement, and dividend-like payouts via smart contracts. Chadha stressed this shifts power from millionaires and billionaires, opening doors for the common man to build wealth in high-return avenues previously out of reach.
Everyday Gold Example Brings It Home
To drive the point, Chadha used gold as a relatable benchmark. With 10 grams costing around ₹1.35 lakh, no jeweler sells ₹500 worth of physical gold to a walk-in customer. Yet digital gold and ETFs changed that, letting small investors gain price exposure electronically. He said tokenisation extends this logic across asset classes: imagine owning a sliver of a Mumbai Grade-A office building for ₹5,000, collecting micro-rents monthly, and selling tokens liquidity without property dealers or registry hassles.
This process eliminates broker fees, cuts intermediary costs, and provides instant liquidity in traditionally illiquid markets. Chadha highlighted how middle-class savers would secure better retirement outcomes through diversification, higher yields, and effortless trading, all while aligning with India’s cultural affinity for real estate and metals, where 70-80% of household wealth sits.
How Tokenisation Actually Works
Chadha outlined the mechanics simply, but real-world implementation adds layers of structure. Typically, an asset like a revenue-generating bridge or music catalog goes into a special purpose vehicle (SPV) or trust for legal isolation. The SPV issues blockchain-based tokens tied to ownership, revenue shares, or both, compliant with securities laws. Platforms like Securitize or RealT (in the US) handle issuance, KYC verification, and secondary trading on licensed exchanges.
Smart contracts automate everything: rental income from tokenized apartments flows directly to holders proportionally; commodities like tokenized silver track spot prices with custody backing. Blockchain ensures an immutable audit trail, reducing fraud risks. Investors access via apps or wallets, with transfers restricted to verified users. This setup has powered pilots where tokenized Treasury bonds settle in minutes, not days, slashing costs by 50-90%.
Global Leaders Already Live with It
Chadha pointed to international precedents as proof of viability. In the US, the SEC classifies most tokens as securities under the Securities Act, greenlighting platforms like tZERO for tokenized real estate and funds via Reg D offerings. Over $1 billion in tokenized assets trade there, from Manhattan apartments to private equity slices.
Singapore’s Project Guardian, run by the Monetary Authority, tests tokenised bonds and funds with DBS and JPMorgan, proving 24/7 settlement and fractional access for retail. The EU’s MiCA Regulation and DLT Pilot Regime enable tokenized eurobonds and ETFs, with BlackRock launching onchain funds. Dubai’s VARA licenses exchanges for tokenized property, drawing $500 million in deals. These frameworks balance innovation with safeguards like investor caps and disclosure rules, attracting billions that India could capture instead.
Real-World Use Cases Powering Adoption
Globally, tokenisation thrives in practice. In the US, RealT tokenizes US rental properties; investors buy $50 tokens earning daily rent yields, with full liquidity on Polygon blockchain. Switzerland’s IX Swap trades tokenized stocks and real estate, serving 10,000 users. Singapore tokenized $100 million in money market funds via DBS, cutting settlement from T+2 to near-instant.
India sees early movers too: Kotak tokenized a bond via HDFC; startups like Tokeny pilot fractional art and farmland. Imagine a tokenized Mumbai Metro line: retail investors fund expansions, earn toll shares. Or gold vaults in Jaipur divided into rupees, blending tradition with tech. These cases show 20-30% cost savings, broader participation, and liquidity multipliers, per BCG reports.
Why does India need a 𝗧𝗼𝗸𝗲𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗕𝗶𝗹𝗹?
— Raghav Chadha (@raghav_chadha) December 16, 2025
I explained in Parliament today. pic.twitter.com/Ucw395cWpg
Tailored Wins for India’s Middle Class
Chadha emphasized cultural resonance: with households parking 70-80% in property and bullion, tokenisation lets salaried workers own digital fractions without loans or physical storage. Returns beat FDs (gold at 10-15% annualized historically), liquidity trumps 6-month sales cycles, and transparency curbs black money in deals. Retirement gets fortified as portfolios mix volatile equities with stable asset tokens.
He said easier access means no more “niche” labels on alternatives; anyone with a UPI-linked demat can join. Risks like volatility stay, but regulation would enforce disclosures and limits, much like SEBI does for mutual funds.
Urgent Call for India’s Tokenisation Bill
Chadha advised a bespoke Tokenisation Bill with a regulatory sandbox for safe experimentation by fintechs, developers, and banks. This clarity would redirect global capital from Singapore, UAE, Hong Kong, and US hubs into Indian infra and realty, spurring jobs and growth. He likened it to UPI’s explosion: from zero to 50% of global payments volume, proving India’s execution prowess.
If enacted, India could pioneer inclusive tokenisation for emerging markets, blending Aadhaar-KYC with blockchain for billions underserved by traditional finance. Chadha concluded the time is now to legislate this revolution, turning savers into stakeholders and cementing India’s fintech supremacy
