GIFT City may soon host India’s first regulated global realty and infra-asset tokenization platform. The process is in the initial stage, and IFSCA has only granted conditional approval to select entities. One of them is Realdom India Pvt Ltd. The company is working to set up a platform known as Pinvest Exchange.
GIFT City, an acronym for Gujarat International Finance Tec-City, is known to host more than 500 entities in banking, stock exchanges, aircraft, ship leasing, and fintech companies. Some entities in GIFT City are IBM, Google, and Oracle. Launching India’s first regulated global realty and infra-asset tokenization platform will likely boost investment opportunities for small traders.
Real Estate and infrastructure projects demand heavy investments and take away the chance for small inventors to be a part of the growth story. However, the initiative, which is in the early stages, will eliminate the barrier via asset tokens backed by blockchain technology and provide liquidity to global asset owners.
The process will begin with boarding assets onto the tokenization platform for trading and investment. This will happen only after relevant authorities have concluded due diligence, independent valuation, and project credit rating. Assets will then be converted into tokens, which will be issued to investors. Management of the tokens will be looked into by custodians.
Blockchain technology has been chosen to back the project because it brings with it the aspect of security and asset ownership. Benefits span across the ecosystem for stakeholders, including, but not limited to, developers and investors. The idea here is to have an independent marketplace for real estate and infrastructure just like others – diamonds, commodities, and equity, to mention a few.
An asset tokenization committee has been formed to work on a recommendation for the regulator. This will assist in the formation of a new financial instrument.
The development comes days after several Indian asset managers expressed their desire to move their offshore fund business to GIFT City. They are currently housed in Singapore & Dubai and are looking to have better access to the capital markets of India. It serves the country well since the government actively promotes GIFT City as a gateway for global capital and financial services for the economy.
The attempts to attract companies are being made through incentives like tax breaks. Eight to ten Indian asset managers have relocated their businesses in the last 6 months or filed for permits with authorities. Swarup Mohanty, the Chief Executive of Mirae Asset Investment Managers, stated that they have moved to GIFT City for its proximity to the Indian market.
Having India’s first global realty, infra-asset tokenization platform in GIFT City boosts the region and does wonders for small investors and the industry.
