India's First Regulated Infra Tokenization Platform Set to Launch in Gift City

India is likely to have the First Regulated Infra platform launch in GIFT City:

The International Financial Services Centers Authority (IFSCA), the regulatory body of Gujarat International Finance Tech City (GIFT City), has given approval based on certain conditions to a few entities to start a platform for asset tokenization. One of these entities is Realdom India.

What tokenization means

It is a process whereby; an asset is converted into unique digital units called tokens. Using blockchain technology, assets (either tangible or intangible) can be broken into smaller units, representing ownership. It indicates ownership of a valuable asset.

Blockchain technology ensures that no one can change your ownership of that asset, making it one of the safest ways to digitally hold the asset.

Let’s understand it with the help of an example:

A property valued at Rs. 2,00,00,000 is there. Given the size of the investment, investors might find it challenging to pay the whole Rs. 2,00,00,000. To address this issue, the property can be split up into 20,000 tokens, each worth Rs. 1000, so that investors can purchase a portion of the asset rather than the total amount. This will increase liquidity and give the asset fractional ownership.

Following are some of the advantages of this innovative approach

1. Improves connection between investors and asset owners: As we all know, investing in real estate costs an arm and a leg, which prevents asset owners from accumulating the capital required by them. It also curtails investors who seek growth opportunities in investment. Therefore, asset tokenization helps to eliminate the gap between investors and asset owners by improving their connections.

1. It helps generate employment: The real estate industry is one of the areas that produces a lot of jobs. Since the real estate industry depends on many other industries, a boom in real estate investment brought forth by asset tokenization will benefit these other industries.

1. Saves cost and time: There are several ancillary costs associated with buying and selling real estate, including brokerage fees, legal fees, and statutory costs like stamp duty. Finding a house that is worth the money also takes a lot of time. Time and money will be saved on real estate transactions using tokenization.
   

Transparency: Blockchain technology will be used to provide tokenization services, preventing fraud and restricting access. Additionally, because this process is controlled, it will adhere to the legal guidelines set forth by the regulatory body, enhancing transparency and boosting investor confidence.

Thank you.

Regards,

Bhakti Joshi,

Kautilya, IBS Mumbai.