Tokenisation can create a common market for real-world assets, says Mudrex CEO Edul Patel
Edul Patel, Co-founder and CEO of Mudrex, says tokenisation could improve liquidity, pricing transparency and investor access by bringing real-world assets onto a common digital ledger, while emphasising the importance of regulatory oversight and enforcement.
Tokenisation could reshape how investors access and transact in real-world assets by bringing them onto a shared digital infrastructure. From bonds and gold to real estate, the technology offers the potential to improve liquidity, streamline transactions and make investment opportunities more accessible. However, the extent of these benefits will depend on the evolution of regulatory frameworks and the safeguards governing these assets.
Speaking at the Business Standard BFSI Insight Summit 2026 Smart Investor Arena, Edul Patel, Co-founder and CEO of Mudrex, highlighted the potential of tokenisation to address fragmentation in financial markets, particularly in the bond segment, where limited secondary-market liquidity and multiple trading platforms can affect price discovery and accessibility.
A common ledger could improve bond market liquidity
Patel pointed to the structure of India's bond market to explain the need for a more coordinated trading infrastructure. A significant portion of the bonds available to investors comes through secondary-market offerings, while primary issuance remains limited. The secondary market also faces liquidity constraints, with multiple platforms distributing the same bonds across separate marketplaces.
According to Patel, this fragmentation can make it difficult for investors to assess prices transparently and access the same securities across platforms. Tokenisation could help address these limitations by enabling transactions and asset records to be maintained on a common digital ledger.
Drawing a parallel with equity markets, Patel said a shared infrastructure could bring greater coordination to bond transactions, potentially improving price transparency and market accessibility while supporting more efficient trading.
The underlying proposition is to move beyond disconnected systems towards a common framework in which assets can be recorded, accessed and transacted through a more integrated infrastructure.
Investment access will depend on asset class and regulation
Tokenisation could also expand the ways investors diversify their portfolios across asset classes with different risk and return characteristics. By enabling fractional ownership and more accessible digital representations of certain assets, the technology could broaden participation in markets that have traditionally involved higher entry barriers.
However, the availability of tokenised products varies across asset classes. Patel noted that while some formats are already available, tokenised real estate and Indian equities remain subject to an evolving regulatory pathway.
The pace of adoption will therefore depend not only on technological development but also on how regulatory frameworks accommodate new forms of asset ownership, trading and settlement.
Regulatory safeguards remain central to investor trust
For Patel, regulatory oversight is fundamental to building confidence in tokenised assets. He noted that investors require assurance about ownership, the legitimacy of transactions and the mechanisms available to enforce their rights.
He compared the due diligence involved in purchasing land, where buyers typically examine the property's ownership history, with the scrutiny that tokenised assets would also require. Digital representation alone cannot eliminate the need to establish clear ownership rights and reliable enforcement mechanisms.
Patel said India's regulators have to balance the expansion of access through emerging financial infrastructure with the need to protect investors. He also emphasised the role of industry participants in contributing to the regulatory conversation as new models develop.
Ultimately, tokenisation's potential will depend on more than the digitisation of assets. A common ledger could help address fragmentation and improve market efficiency, but sustained adoption will require transparent processes, credible ownership records and regulatory safeguards that give investors confidence in the underlying assets.