PIONEER EDGE NEWS SERVICE
A quiet transformation is underway in global financial markets. Increasingly, investors are gaining access to shares through blockchain technology rather than traditional stock exchanges. Crypto platforms such as Robinhood, Kraken and Bybit have begun offering tokenised US stocks, allowing investors outside the United States to buy digital tokens that mirror the value of listed companies like Apple and Tesla.
A tokenised stock is a blockchain-based digital representation of a real share. Each token is backed by an actual share held by a regulated custodian, enabling investors to receive benefits such as dividends while enjoying greater flexibility in trading and ownership.
Unlike conventional stock markets, tokenised stocks operate on open blockchain networks such as Solana, Ethereum and Arbitrum. This removes many of the limitations associated with traditional financial infrastructure. Investors are no longer restricted by exchange trading hours, settlements can take place almost instantly, and even expensive shares can be purchased in small fractions, making investing more accessible.
Another important advantage is programmability. Tokenised stocks can be transferred across borders, used as collateral or exchanged for stablecoins—digital assets linked to the value of traditional currencies—within minutes. Such features are difficult to achieve through conventional stock market systems and have the potential to make global investing faster, cheaper and more efficient.
The growing popularity of tokenised assets indicates that investor interest is strong. Backed Finance’s xStocks, launched through Kraken and Bybit, generated significant trading volumes soon after its debut. Robinhood has expanded its European platform to include hundreds of tokenised US stocks and exchange-traded funds, while major global asset manager BlackRock has also entered the tokenisation space through its blockchain-based US Treasury fund. These developments suggest that blockchain is increasingly becoming part of mainstream financial infrastructure rather than remaining confined to the cryptocurrency ecosystem.
India has also begun exploring this emerging field. In 2025, the Securities and Exchange Board of India (SEBI) approved a regulatory sandbox pilot for Xaults, an IIM Ahmedabad-incubated startup, allowing retail investors to purchase fractional ownership of selected Indian shares through distributed ledger technology. The initiative is now being expanded to include additional asset classes, signalling growing regulatory interest in tokenised securities.
The next challenge is whether India should embrace open blockchain networks and regulated digital asset platforms to support wider adoption. Such a framework could enable 24-hour markets, near-instant settlement and lower investment thresholds while leveraging the compliance systems already adopted by India’s Virtual Digital Asset (VDA) exchanges.
Although crypto assets are yet to receive full regulatory recognition in India, global experience shows that open blockchain infrastructure has become the preferred foundation for tokenised securities. As countries continue to modernise their financial systems, India has an opportunity to build an innovation-friendly regulatory framework that encourages responsible adoption while safeguarding investors. A timely policy approach could help the country participate in the next phase of global financial innovation instead of merely responding to it later.
