Unlocking Wealth: The Promise of Tokenisation in India

Tokenisation is poised to revolutionize how Indians manage and leverage their assets, particularly gold and property. Edul Patel, co-founder and CEO of Mudrex, discussed these possibilities at the Business Standard Smart Investor Arena 2026, highlighting how this technology can unlock hidden wealth.

Enhancing Asset Visibility

According to Patel, many Indians are among the most creditworthy individuals globally, but their wealth often remains obscured due to fragmented ownership records. This lack of clarity hinders financial institutions from accurately assessing household wealth.

Tokenisation offers a solution by creating verifiable ownership records, which can improve visibility for lenders. This enhanced transparency allows borrowers to secure loans at lower interest rates, as verifying creditworthiness becomes easier.

Impact on Investment Markets

Tokenisation has the potential to address existing inefficiencies in India's debt market. Currently, the same bond may be available across various platforms, leading to splintered trading activity. Patel envisions a future where a unified ledger could streamline trading, similar to how equities are managed on platforms like the National Stock Exchange and the Bombay Stock Exchange.

Accessing Tokenised Assets

While tokenisation could allow investors to participate in asset ownership with smaller investments, Patel cautions against assuming that every asset is suitable for division into tradable units. For example, the concept of owning a fractional stake in land raises questions about legal ownership and market dynamics.

Currently, Mudrex offers tokenised equities and commodities, though tokenised bonds and real estate are limited in availability for retail investors. The recent issuance of a tokenised bond by the Rural Electrification Corporation (REC) marks a significant milestone. However, the absence of a secondary market means that trading these tokens is not yet feasible.

Moreover, Patel emphasizes that tokenisation should not solely be seen as a means to facilitate everyday purchases through fractional ownership. Its real value lies in simplifying asset verification and collateral usage.

Building Trust and Regulation

For tokenisation to gain traction in India, it is crucial that investors trust that digital asset representations come with enforceable ownership rights. Patel argues that establishing a robust regulatory framework, rather than creating a new regulatory body specifically for tokenisation, is essential. Existing regulators should continue overseeing assets while new policies support the digital landscape.

Additionally, Patel believes that India requires a public digital infrastructure, akin to the Unified Payments Interface (UPI), to promote the widespread adoption of tokenised assets. This infrastructure is expected to set common standards for ownership verification and asset transfer, while enabling private companies to create user-friendly applications.

Navigating Taxation Challenges

The conversation also touched upon the taxation of crypto assets in India, particularly the current 30% tax on applicable gains and the 1% tax deducted at source (TDS) on virtual asset transfers. Patel asserts that crypto platforms must illustrate their economic contributions to persuade policymakers to reconsider tax regulations.

As regulatory frameworks evolve, Patel envisions platforms expanding beyond just crypto trading to encompass a broader array of financial assets. He predicts that over the next five years, tokenisation technology might become an integral, yet invisible, part of the financial services landscape.

“The magic will happen as consumers gain access to diverse financial services at reduced costs,” Patel concludes. This transformation could drastically enhance financial accessibility for many Indians, opening doors to previously untapped wealth.