The Promise and Governance of Asset Tokenization in India

DOI: https://doie.org/10.10399/ES.2026136618

Dr. Kanchan G. Rajput, Dr. Sekappa N Makkalageri

Keywords:

Asset Tokenization, Real-World Assets, Investor Awareness, Regulatory Clarity, Financial Inclusion, India.

Abstract:

Purpose: Asset tokenization, powered by distributed ledger technology (DLT), is fundamentally restructuring financial market infrastructure by enabling the digital representation of real-world assets (RWAs) such as real estate and commodities,. While global interest is growing due to potential improvements in post-trade efficiency and transparency, adoption remains inconsistent in emerging markets like India,. This study addresses a significant research gap by providing investor-centric empirical evidence on awareness, adoption potential, and the influence of regulatory perceptions, which have been largely overlooked in favor of technological or policy-oriented studies,.

Methodology: The research utilizes a structured questionnaire targeted at retail and middle-class investors in India (N=200) to capture data on awareness, perceived benefits, perceived risks, and adoption intention,. The study employs a five-point Likert scale and analyzes the data through Cronbach’s Alpha for reliability, descriptive statistics, and multiple regression analysis with moderation,.

Findings: The empirical results reveal a moderate level of awareness (Mean: 2.84) among Indian investors, yet 69.5% of respondents exhibit moderate-to-high adoption intention,. Perceived benefits, including fractional ownership and enhanced liquidity, are identified as the strongest positive drivers of adoption (β = 0.41, p < 0.001),. Conversely, perceived risks related to cybersecurity and legal enforceability act as significant deterrents (β = −0.36, p < 0.001),. Crucially, perceived regulatory clarity functions as a vital moderator, strengthening the positive impact of benefits while weakening the negative influence of risks on adoption intention,.

Practical Implications: The study suggests that for asset tokenization to thrive in India, stakeholders must move beyond technological readiness to focus on targeted investor education and the development of unified legal taxonomies,. Strengthening regulatory frameworks and mandating robust risk-mitigation standards are essential to foster the institutional trust necessary for widespread participation,.

Originality: By bridging global conceptual theories with India-specific empirical evidence, this study provides a unique foundation for understanding how investor behavior and regulatory assurance collectively shape the future trajectory of digital asset markets in a major emerging economy,.

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