India’s Decimal Point Analytics (DPA), a research and data analytics firm, has received grant funding of up to US$750,000 from The Hashgraph Association, a Switzerland-headquartered non-profit organization, to develop an asset tokenization platform on Hedera’s distributed ledger technology (DLT) network.
See related article: DeFi’s real estate revolution: The rise of tokenization
Fast facts
- DPA has received approval from regulators in India to introduce tokenization products within its sandbox environment, the company said in an emailed statement shared with Forkast on Tuesday.
- “Asset tokenisation is at a fairly nascent stage of development here in India but is definitely the future as far as the finance market goes,” Shailesh Dhuri, chief executive of Decimal Point Analytics, said.
- “India is in a growth phase and is making huge investments in everything from road, rail, port, health, renewables, to massive next generation data centers. Tokenization of these newly built government infrastructure assets will create new asset classes, which are stable in value and offer an immediate market size in excess of US$100 billion,” Dhuri added.
- In collaboration with Swiss Digital Assets Institute, a training and innovation company backed by the Swiss government, DPA will receive professional support including assistance to develop regulatory compliant tokenization solutions for the financial markets in India.
- Tokenized assets are expected to expand into a US$16 trillion business opportunity by 2030 – making up 10% of global GDP by the end of the decade – from US$310 billion in 2022, according to a report by global consulting firm BCG and the digital exchange for private markets ADDX.
- Many central banks and financial institutions are also exploring the technology. Singapore’s central bank has announced Project Guardian, a collaborative initiative with the financial industry to explore the economic potential and value-adding use cases of asset tokenization. JPMorgan’s blockchain business unit Onyx also aims to bring trillions of dollars in tokenized assets to decentralized finance.
- See related article: How tokenization could transform Hong Kong’s fixed income markets