India’s GIFT City Set to Introduce Regulated Asset Tokenization in 2024

By Sunil Sonkar
2 Min Read
India's GIFT City Set to Introduce Regulated Asset Tokenization in 2024

GIFT City in Gujarat is gearing up to make a splash in the financial world by introducing a regulated platform for tokenizing real-world assets (RWA) in January 2024.

First, they are focusing on turning real estate into tokens. Later, they want to do the same with art, aircraft and ships. The goal is to bring in more investors from other countries to support projects in GIFT City.

Real asset company Collated is leading the way in something really new. They made a tech thing called Terazo using blockchain and it works inside GIFT City. They are creating a place where you can buy and sell tokenized stuff using the Polygon blockchain. They are also using GIFT City’s special fund to organize the money part.

In collaboration with Indian construction firm Savvy Group, Collated is set to kickoff its first real estate tokenization project and aims to raise $7 million for a building within the Gift City Special Economic Zone (SEZ). While the venture is not fully open to retail investors, the entry criteria are relatively more accessible, requiring approval from eligible investee countries and a minimum net worth of $150,000.

Shaan Zaveri, an important person at Terazo and Collated, said this is a big deal. He mentioned that although other Indian cities are also using tokens, they are not following many rules. Zaveri talked about how it is hard for foreign investors to join in and that we need more money moving around easily.

Notably, GIFT City is not only venturing into real estate tokenization but is also piloting tokenized cash. JPMorgan is playing a role in this aspect, providing the tokenization solution through its Onyx JPM Coin blockchain-based bank accounts. The tokenized U.S. dollars are being used by five GIFT City banks to settle Rupee forex derivative contracts, allowing for 24/7 dollar transactions, a significant improvement over the limitations of U.S. banking hours.

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