Telangana government in collaboration with industry partners will be launching an asset tokenization standard framework aimed at protecting investors and consumers while allowing the industry to grow and innovate.
Asset tokenization is the process of representing real-world assets such as real estate, art or securities, as digital tokens on a blockchain. This measure will allow these assets to be traded and exchanged more easily and efficiently. The framework will provide a common set of rules and guidelines for the tokenization, the Department of Information Technology, Electronics and Communications said in a release on a roundtable conference, on asset tokenization, here on Saturday.
The industry partners in the initiative include Sino Global Capital, the World Economic Forum, C-DAC, IIIT-H, Bharat Web3 Association, Indian Blockchain Forum, Open Trade and European Crypto Initiative.
Describing the proposed initiative as a significant step for the development of the blockchain and Web3 ecosystem in Telangana, IT and Industries Secretary Jayesh Ranjan said the framework will provide the much-needed clarity that businesses and investors need to adopt asset tokenization. The framework will help create a more conducive environment for the development of asset tokenization businesses and projects in the State, he said.
Besides government officials, representatives from industry, VC firms and academia participated in the conference.
Bharat Web3 Association chairman Dilip Chenoy said asset tokenization holds the potential to unlocking untapped value worth billions. “The potential it holds to democratise access, increase liquidity and create 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 framework is a step in our efforts to promote the adoption of blockchain technologies in Telangana,” said Rama Devi Lanka, Director of Emerging Technologies, Telangana government.
