On February 26, 2025, the International Financial Services Centres Authority (“IFSCA”) issued a consultation paper on the regulatory approach towards tokenization of real-world assets (“Consultation Paper”)[1]. IFSCA has identified tokenization of real-world assets as a transformative force in financial services. IFSCA seeks comments and feedback from stakeholders latest by March 20, 2025.
Tokenization is revolutionizing asset ownership, cross-border payments, and trade finance, improving efficiency and liquidity, while reducing costs. The Expert Committee on Asset Tokenization, of 2023, has been formed to create a regulatory framework for digital assets in International Financial Services Centre, informed by global trends and stakeholder feedback.
The objective of this Consultation Paper is to present IFSCA’s perspective on the regulation of tokenization for various real-world assets, including financial securities (e.g., funds, bonds, stocks), financial products (e.g., payments, deposits, bills receivable), and other assets such as precious metals, commodities, intellectual property, and commercial real estate. IFSCA aims to highlight the regulatory challenges identified by itself and the Expert Committee on Asset Tokenization, seeking feedback from stakeholders and domain experts to develop effective, proportional, and practical solutions.
[1] https://ifsca.gov.in/Viewer?Path=Document%2FReportandPublication%2Fregulatory-approach-towards-tokenization-of-real-world-assets26022025100615.pdf&Title=Regulatory%20Approach%20towards%20Tokenization%20of%20Real-World%20Assets&Date=26%2F02%2F2025