Edul Patel Explains Tokenisation's Impact on Indian Investment Landscape

Tokenisation is quickly gaining attention in financial circles as an innovative way to record tangible assets like bonds, real estate, and gold on a unified digital ledger. This method promises to enhance investment accessibility, improve liquidity, and reduce costs. At the Business Standard BFSI Insight Summit 2026 Smart Investor Arena, Edul Patel, the cofounder and CEO of Mudrex, shared his insights on how tokenisation could reshape investing in India, the opportunities it presents, and the regulatory role in establishing trust.

Understanding Tokenisation for Investors

Patel began by clarifying the concept of tokenisation for the audience. He explained that it involves logging financial assets on decentralized technology infrastructure, making them more accessible and tradable on a single platform that is both cost-effective and straightforward to use. He highlighted the current limitations in bond markets, where most offerings are secondary and primary issuances remain scarce. Secondary markets often suffer from low liquidity, partly because multiple platforms sell the same bonds independently, leading to fragmented pricing and reduced transparency.

Tokenisation aims to consolidate these transactions onto a common ledger. Patel compared this to how equities in India are traded through a unified exchange. By enabling multiple sellers to operate on one system, tokenisation can improve liquidity and pricing clarity, while simplifying access for investors.

When Will Tokenised Assets Become Tradable?

The CEO noted that timelines for tokenised asset availability vary depending on the asset class. Tokenisation allows wealth to be spread across diverse, non-correlated asset types, which can strengthen portfolio protection through diversification. Patel emphasized the importance of distributing investments across various assets to avoid concentration risk, especially given global uncertainties.

Currently, certain tokenised assets are accessible, but tokenised real estate or Indian equities remain unavailable pending regulatory developments. The regulatory environment is evolving, and once pathways are clear, investors can expect more opportunities to transact in these tokenised instruments.

The Role of Trust and Regulation

Trust is a key factor for investors engaging with tokenised assets, particularly in India. Patel pointed out that regulatory oversight is essential to build confidence in these digital records. He gave the example of how land ownership is carefully verified through extensive historical checks before any transaction takes place.

Similarly, tokenised assets will require strong regulatory frameworks and enforcement mechanisms. Patel praised Indian regulators for their balanced approach in opening access to new technologies while safeguarding the interests of the general public. He expressed faith in their ability to nurture this emerging infrastructure responsibly.

Patel also called on industry participants to actively contribute to discussions around regulation and technology adoption to ensure these innovations benefit a wide range of investors.

Context on Tokenisation and Its Market Relevance

Tokenisation is part of a broader trend towards digitization in finance, where blockchain and distributed ledger technologies offer new ways to represent ownership and facilitate transactions. This shift has the potential to disrupt traditional asset markets by lowering barriers to entry and enabling fractional ownership.

In India, where investment options have traditionally been limited by regulatory and infrastructural challenges, tokenisation could democratize access to assets previously available only to institutional or high-net-worth investors. It may also introduce greater transparency and efficiency into secondary markets, which have historically been fragmented.

As technology matures and regulations adapt, tokenised assets might become a standard feature of Indian portfolios, offering investors more flexibility and control over their holdings.

Edul Patel’s insights at the summit provide a valuable perspective on how tokenisation fits into the evolving investment landscape. His emphasis on trust, regulatory collaboration, and diversification highlights the practical considerations that will shape the adoption of this technology in India.