RBI Official Affirms Manageable Risks In Asset Tokenisation, Calls For Regulatory Guardrails

A senior Reserve Bank of India (RBI) official has stated that while the emerging practice of asset tokenisation carries certain risks, these are manageable and can be effectively addressed through robust regulatory frameworks. Asset tokenisation, which converts ownership of real-world assets into digital tokens on blockchain platforms, holds immense potential for market innovation and liquidity enhancement.

 

Key Highlights

 

The RBI emphasizes the need for clear regulatory guardrails to mitigate risks such as fraud, money laundering, and market volatility associated with tokenised assets.

 

Tokenisation is expected to enhance accessibility, transparency, and efficiency in financing by enabling fractional ownership and swift transferability.

 

Coordination among regulators is vital to address cross-border challenges and ensure consumer protection in this nascent ecosystem.

 

The central bank is actively engaging stakeholders to develop guidelines balancing innovation with systemic stability.

 

Outlook

With correct oversight, asset tokenisation could transform financial markets by democratizing asset ownership, fostering inclusion, and supporting economic growth while keeping risks manageable.

 

Sources: RBI official statement, Economic Times, Moneycontrol, LiveMint