India’s financial capital is rapidly developing a framework for asset tokenization that could release around ₹50 trillion ($566 billion) in idle capital. This move seeks to transform real estate deals and lending processes by facilitating instant, blockchain-powered digital asset transfers.
“The pace at which we normally work, it would take 20 years to unlock Mumbai’s potential. We can do it in two years if we do the tokenization,” Maharashtra Chief Minister Devendra Fadnavis reportedly announced, while presenting the goal of establishing the western Indian province of Maharashtra as the country’s first tokenized state. Fadnavis has set a target of making Maharashtra a $1 trillion economy by 2030.
Mumbai, the capital city of Maharashtra province and also India’s costliest city in terms of living expenses, is undergoing major infrastructure upgrades, including the construction of a significant bridge, extensive road networks, and both underground and undersea tunnels. These projects aim to ease traffic congestion, cut pollution, and enhance connectivity for the roughly 22 million residents and commuters who depend on the city’s transport system.
“Huge potential of our wealth is yet to be unlocked. It takes a long time for people to unlock their assets and raise capital. It curtails our ability to reap from. We will create a framework where you can tokenize your assets. We will be working with the regulators, innovators, and startups,” he said.
The announcement comes days after the Reserve Bank of India (RBI) revealed its intention to introduce tokenization for financial assets and settlements using its wholesale central bank digital currency (CBDC). This move follows encouraging results from pilot projects involving the issuance of Certificates of Deposit (CDs), which demonstrated improved market efficiency. CDs are fixed-income instruments governed by RBI regulations.
Asset tokenization involves transforming real-world assets (RWAs) into digital tokens recorded on a blockchain, enabling fractional ownership and facilitating international trade. This approach expands market participation, improves transparency, and automates settlements using smart contracts.
“Revolution is coming to India, and we want to catch it. We already have good GCCs (global capability centres) investing in Mumbai, Pune, and other cities. We need to create an ecosystem where this entire GCC revolution is captured by the state of Maharashtra,” Fadnavis added.
A GCC is a dedicated unit established by a multinational corporation to manage key business operations such as information technology, finance, research and development, and customer support. India has emerged as a leading destination for GCCs due to its vast talent pool, competitive costs, and favorable business climate. These centers in India have transformed from mere cost-efficiency units into strategic hubs driving innovation and high-value, knowledge-based work.
India sees rapid rise of tokenized deposits, cards
“Overall, tokenised deposits may provide benefits of increased liquidity, cost effectiveness, improved accessibility (24×7), fractional ownership and quick settlements,” Patra pointed out.
Card tokenization has seen rapid adoption in India, with over 91 crore (910 million) card-on-file tokens issued by December 31, 2024, enabling more than 320 crore (3.2 billion) transactions, according to the central bank. Introduced in 2019 for devices and in 2021 for merchants, tokenization replaces card details with unique digital codes, preventing merchants from storing actual card data and enhancing transaction security.
According to a recent report by the Boston Consulting Group (BCG), the tokenization of real-world assets (RWAs) could reach a value of $23.4 trillion by 2033. While stablecoins currently dominate the tokenized asset landscape, traditional financial institutions are expected to play a significantly larger role as the market evolves. Tokenized bonds and funds are projected to become core components of the industry, paving the way for sectors such as real estate, equities, alternative investments, and credit to emerge as major contributors. BCG anticipates that banks will represent more than one-third of all tokenized assets by the decade’s end, with their share climbing to over 50% by 2033.
India is also adopting stablecoins, especially for cross-border transactions. “Innovations like stablecoins are transforming the landscape of money and capital inflows. These shifts may force nations to make binary choices, adapt to new monetary architecture, or risk exclusion. Such developments underscore the scale of transformation which is underway,” Sitharaman said in her speech at a recent event.
“They also remind us that no nation can insulate itself from the systemic changes. Whether we welcome these shifts or not, we must prepare to engage with them,” she added.
