RBI's Tokenisation Plans
The Reserve Bank of India (RBI) is set to expand its tokenisation efforts to other asset classes following successful trials with certificates of deposit (CDs). This move aims to leverage the benefits of tokenisation, including faster issuance, trading, and settlement of financial assets.
Current Status of CD Tokenisation
The RBI has already completed around 249 transactions through CD tokenisation. These transactions were split between the secondary market (around two‑thirds) and the primary market (around one‑third). P Vasudevan, executive director of the RBI, shared these details at the Global Fintech Fest 2026.
Benefits of Tokenisation
Tokenisation involves replacing sensitive details with a unique alternate code and digitally representing an asset's ownership and records on a blockchain. This technology can potentially cover the entire lifecycle of a financial asset, from issuance and trading to settlement. It also enables “atomic settlement”, eliminating the settlement gap or window.
Future Developments and RBI's Approach
The RBI has tested government securities and certificates of deposit on the same platform and believes other asset classes can also be brought onto such platforms. Vasudevan emphasised that tokenisation brings programmability to financial assets, allowing predefined rules to govern their transfer, ownership, and lifecycle. The RBI's approach to innovation involves continuous experimentation and learning from the ecosystem.
Why It Matters
The RBI's push for tokenisation is significant as it can lead to more efficient and faster financial transactions. By expanding tokenisation to other asset classes, the RBI aims to enhance the digital financial ecosystem in India.
What to Watch
Future developments to watch include the RBI's progress in implementing tokenisation for other asset classes and the impact on India's financial markets. The success of these initiatives could lead to wider adoption of tokenisation technology in the financial sector.