📷 Image: Wikimedia Commons / Subhrasingh
Business
Banks and Regulators Turn to Blockchain as New Financial Market Layer
✍️ NDTV Top
🗓 01 Sep 2026, 08:44 AM
👁 29
Banks and Indian regulators are now viewing blockchain technology as a foundational layer for modernising financial markets, moving beyond its earlier association with cryptocurrencies.
Tokenisation, once discussed mainly in the context of cryptocurrencies, is gaining traction among mainstream financial institutions. Recent statements from major Indian banks indicate a shift towards using blockchain to represent assets in digital form, aiming to improve liquidity and settlement speed.
Regulatory bodies, including the Reserve Bank of India, are actively evaluating frameworks that would accommodate blockchain‑based securities and other tokenised instruments. Officials stress the need for clear guidelines to address issues such as investor protection, market integrity, and anti‑money‑laundering compliance.
Industry analysts note that a blockchain layer could streamline back‑office operations, reduce reconciliation costs, and enable fractional ownership of traditionally illiquid assets. While the technology promises efficiency gains, experts caution that robust legal and technical standards are essential before widespread adoption.
The emerging focus on tokenisation reflects a broader ambition to modernise India’s financial infrastructure, aligning it with global trends while preserving regulatory oversight.
Regulatory bodies, including the Reserve Bank of India, are actively evaluating frameworks that would accommodate blockchain‑based securities and other tokenised instruments. Officials stress the need for clear guidelines to address issues such as investor protection, market integrity, and anti‑money‑laundering compliance.
Industry analysts note that a blockchain layer could streamline back‑office operations, reduce reconciliation costs, and enable fractional ownership of traditionally illiquid assets. While the technology promises efficiency gains, experts caution that robust legal and technical standards are essential before widespread adoption.
The emerging focus on tokenisation reflects a broader ambition to modernise India’s financial infrastructure, aligning it with global trends while preserving regulatory oversight.