India Proposes Legislation to Democratize Investment Through Tokenization
India is considering new legislation aimed at expanding access to investments through tokenization, according to policymakers. Tokenization involves converting real-world assets such as equities, bonds, or real estate into blockchain-based digital tokens, allowing fractional ownership and easier market access.
If implemented, the proposal could open investment opportunities to a wider population by lowering entry barriers and improving liquidity. From a money supply perspective, tokenization may increase capital efficiency by enabling faster circulation of funds and attracting dormant capital into formal markets. This move also signals India’s growing interest in integrating blockchain technology into its financial system while modernizing capital markets.
