Business · India Bureau
Tokenisation could unlock asset value, reduce borrowing costs: Crypto exec
Blockchain-based tokenisation of physical assets like gold, bonds and property could improve accessibility and enable their use as collateral, according to industry leaders. The technology presents potential avenues for Indians to tap hidden wealth and lower financing expenses.
LSN India ·
Tokenisation—the process of converting physical assets into digital tokens on blockchain networks—could fundamentally reshape how Indians access and leverage their wealth, according to senior figures in the cryptocurrency and fintech sectors.
By digitising traditionally illiquid assets such as gold, bonds and real estate, tokenisation could make these holdings more tradeable and easier to mobilise as collateral for loans, potentially unlocking value that currently remains inaccessible to many retail investors.
The technology addresses a significant challenge in India's financial landscape: the difficulty ordinary citizens face in converting physical holdings into usable capital without lengthy intermediation processes. Tokenised assets could streamline transactions and reduce associated costs, making borrowing more affordable for individuals and businesses.
Industry participants point to tokenisation as a natural evolution of digital finance infrastructure in India. As regulatory frameworks develop and adoption grows, the mechanism could enable faster settlement, greater transparency and improved access to credit markets across the country.
The potential applications extend beyond individual investors to institutional holdings, where tokenisation could enhance liquidity and efficiency in traditionally cumbersome markets like real estate and precious metals trading.