India Aims for Regulated Asset Tokenization to Democratize Investments for the Middle Class

A member of Parliament in India has proposed a draft legislation on tokenization, aiming to democratize investment opportunities by standardizing asset tokenization across traditional assets such as real estate and equities. The measure seeks to widen access for the middle class to digital investment offerings through regulated, token-based securities.

The draft would establish a clear regulatory framework to enable compliant asset tokenization with robust KYC/AML controls, enhanced market transparency, and stronger investor protection. By defining issuance, custody, and trading standards, the plan aims to reduce friction in digital asset markets and support scalable liquidity for tokenized assets.

Should Parliament pass the measure, India’s digital asset infrastructure would gain regulatory alignment, expanding access to tokenized products for ordinary investors and contributing to the maturation of the country’s financial markets while maintaining strict adherence to regulatory norms and risk controls.