Asset tokenisation: The next financial rail for India?

Asset tokenisation is recognised as a development in India’s financial ecosystem, for reshaping how investors access and participate in high-quality assets. As financial markets evolve, tokenisation is expected to enable fractional ownership, improve liquidity, and broaden investor participation across asset classes.

India’s growing investor base highlights the relevance of such innovation. According to industry data, the mutual fund sector recorded over 27 crore folios, while depository accounts crossed 18 crores as of March 2026. While participation continues to expand, access to high-value and complex assets remains limited for a large segment of investors. Tokenisation is viewed as a mechanism to bridge this gap by enabling smaller and more accessible ownership units.

Regulatory developments in India indicate a structured approach toward digital financial systems. The Reserve Bank of India has already introduced frameworks in areas such as card tokenisation and the digital rupee, focusing on security, consent, and governance. The programmability features of the digital rupee, including controlled usage and traceability, reflect a broader regulatory comfort with token-based financial mechanisms, helping future developments in asset tokenisation.

Banish Dhar brings expertise at the intersection of finance, policy, and long-term economic design.

Banish Dhar is Principal Advisor to the Chairman of the Shapoorji Pallonji Group, and a strategist, investor, and public thinker working at the intersection of enterprise, public policy, and social impact. He uses strategy and engagement, helping the alignment of profit, purpose, and change.

Dhar notes that tokenisation represents a structural evolution in ownership frameworks rather than a technological trend. He highlights that by enabling fractional ownership and programmable financial structures, tokenisation can connect investors to previously inaccessible asset classes, including private credit, infrastructure-linked returns, and alternative investment products.

Tokenisation is expected to create new avenues for collaboration between traditional financial institutions and emerging fintech players. Established institutions contribute regulatory strength, capital depth, and trust, while new-age platforms bring innovation, efficiency, and enhanced user experience. Together, they can build scalable and compliant systems that support broader market participation.

The potential impact extends beyond product innovation. By improving access and liquidity, tokenisation can contribute to r capital markets and more efficient allocation of resources. This, in turn, supports economic growth by linking household savings more directly with productive investments.

Industry stakeholders emphasise that trust and regulatory integrity will remain critical to the success of tokenised systems. Compliance with data localisation norms, strong custody frameworks, and adherence to KYC and AML standards are expected to form the foundation of any credible ecosystem in this space.

As India continues to strengthen its digital financial infrastructure, asset tokenisation is an opportunity to enhance market depth, improve accessibility, and support the next phase of financial innovation.

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