Maharashtra Chief Minister Devendra Fadnavis has announced a framework for tokenising assets with the goal of unlocking ₹50 trillion in ‘dormant capital’. The announcement was made during the Global Fintech Fest, where the Chief Minister discussed the state’s strategy to digitise real-world assets, aiming to enable faster and more accessible transactions, particularly in the real estate sector.
The Chief Minister highlighted that significant wealth within the state remains untapped because of lengthy processes required to unlock and raise capital from existing assets. “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,” he stated during a discussion with Kunal Shah, founder of Cred.
Real-World Asset Tokenisation
Tokenisation is the digitization process where physical assets like land, real estate or property are turned into digital tokens secured on the blockchain. This allows investors for fractional ownership and facilitates easy lending opportunities, transactions, and brings heightened transparency among markets.
CM announced that the government will work with regulators, startups, and innovators to come up with this tokenisation framework. The measure is set to enable borrowing prospects and quick transactions allowing the investors to access the value locked in assets.
Strategic Collaboration with Regulators and Investors
The Chief Minister also referred to surging investments by the Pune-based Global Capability Centres (GCCs), Mumbai-based GCCs, and so on, and the requirement to develop an ecosystem to maintain this momentum.
This announcement comes shortly after the Reserve Bank of India’s latest kick-off of tokenisation pilot on deposits, further highlighting the innovation in digital infrastructure within the country.
Achieving $1 Trillion Economy by 2030
CM shared his vision of making Maharashtra a pioneer in adopting large-scale asset digitisation, setting a target to help the state become a $1 trillion economy by 2030.
He acknowledged that past infrastructure projects had registered slow pace over years since they underwent successive clearances, making them span generations. He added that, under tokenisation, what would take up to 20 years for the likes of Mumbai will only take two years.
The Next Frontier of Digital Economy
As blockchain technology gains momentum, such initiatives like the Maharashtra ₹50 trillion tokenisation mission signifies the importance of early adoption of new technology and how States can leverage it for unlocking liquidity, improving productivity, and democratizing access to capital.
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