This subcategory utilises blockchain technology to digitise physical or financial assets, making them accessible to a broader range of investors.

India’s tokenisation market is nascent but growing rapidly, driven by increasing blockchain adoption and regulatory interest. India ranks among the top five countries in peer-to-peer (P2P) crypto trading and 75% of Indian users opting for centralised exchanges (CEXs) are aged below 35. Regulatory clarity and integration with existing financial systems remain key challenges, yet the potential for unlocking illiquid assets and broadening investor participation fuels innovation.

Startups in this space are focusing on solving issues such as compliance with KYC norms, ensuring asset provenance and creating seamless secondary markets. Pain points include regulatory uncertainty, asset valuation challenges and limited awareness among traditional investors. Technology-driven platforms are developing smart contracts and interoperable frameworks that automate compliance and enable fractional sales while safeguarding investor rights.

Notable Indian startups working on tokenisation include Polygon Labs, SoluLabs and CoinDCX. These companies are pioneering blockchain infrastructure and asset tokenisation solutions, positioning India as an emerging hub for digital asset innovation and transforming how assets are owned, traded and managed.

Tokenization