Telangana government to launch of asset tokenization standard framework

HYDERABAD: The Telangana government on Saturday announced that it would be launching an asset tokenization standard framework.

Asset tokenization is the process of reflecting real-world assets, such as real estate, art, or equities, as digital tokens on a blockchain. This enables these assets to be transferred and exchanged more easily and efficiently.

The asset tokenization standard framework would provide a common set of rules and guidelines for the tokenization of assets. These standards would help to protect investors and consumers, while also allowing the industry to grow and innovate.

The framework would be developed in partnership with industry partners such as Sino Global Capital, the World Economic Forum, C-DAC, IIIT-H, Bharat Web3 Association, Indian Blockchain Forum, Open Trade, and European Crypto Initiative.

The roundtable conference took place at ITC Kakatiya in Hyderabad on July 22, 2023. The conference was attended by representatives from the government, industry, venture capitalist and academia. Srinivasulu Vemula, Joint Inspector General, Stamp and Registration Department, Government of Telangana, was present at the conference. He was key in implementing the T-Chits projects across the state blockchain based chitfund automation system.

"The asset tokenization standard framework is a significant step forward for the development of the blockchain and Web3 ecosystem in Telangana," said Jayesh Ranjan, Principal Secretary, IT, Electronics & Communications, Government of Telangana. "This framework will provide the much-needed clarity that businesses and investors need to adopt asset tokenization. Asset tokenization standards frameworks will benefit the inclusion of the common man by making it easier for them to participate in the global economy and access new investment opportunities. This framework will help to create a more conducive environment for the development of asset tokenization businesses and projects in the state."

“I believe Asset tokenization holds the potential to unlock untapped value worth billions, revolutionizing how we perceive, own, and invest in assets,” said Dilip Chenoy, Chairman at Bharat Web3 Association.

He added, “The potential it holds to democratize access, increase liquidity, and create new growth avenues will have a massive impact on sectors such as finance, real estate, healthcare and create a more inclusive and prosperous global economy. The BWA's collaboration with the Government of Telangana signifies our commitment to support the government in its effort to develop a framework for asset tokenization, offering any assistance it may require.”

Rama Devi Lanka, Director of Emerging Technologies, Government of Telangana, said, "The asset tokenization standard framework is a step in our efforts to promote the adoption of blockchain technologies in Telangana. Other countries have taken steps to develop frameworks to support the growth of the Web3 industry. It is time for India to step up and develop its own framework to protect investors and consumers, while also allowing the industry to grow and innovate. By developing a clear and supportive regulatory environment, India can position itself as a leading destination for Web3 businesses and investors.”

The roundtable conference enabled the stakeholders to reach a consensus on the key principles of the asset tokenization standard framework.