India's Emerging Tokenised Financial Infrastructure: Strategic Investment Opportunities in Blockchain Partners

Real estate dominates India's tokenization market with a 30.2% share in 2025, addressing long-standing liquidity challenges in a sector where fractional ownership and transparent valuation have been elusive. Institutional investors, accounting for 23.8% of the market, are leveraging tokenization to diversify portfolios and enhance capital efficiency. This shift is supported by regulatory sandboxes from SEBI and IFSCA, which are testing frameworks for tokenized securities and stablecoins. For example, GIFT City's blockchain-friendly policies have attracted projects experimenting with tokenized bonds and real estate investment trusts (REITs).

Blockchain networks, holding 34.8% of the market share, are the backbone of this infrastructure. Their decentralized, immutable ledgers enable secure asset issuance and management, while smart contracts automate compliance and settlement. This technological foundation is critical for scaling tokenization beyond niche use cases into mainstream finance.

Polygon's Strategic Role: Sovereign-Backed Stablecoins and Global Scalability

Polygon, a leading blockchain infrastructure provider, has emerged as a key player in India's tokenized finance ecosystem. Its collaboration with fintech startup Anq Finance to launch the Asset Reserve Certificate (ARC) represents a groundbreaking initiative and the ARC is designed to mirror the rupee's value while operating as a programmable digital asset. This sovereign-backed stablecoin aims to complement India's central bank digital currency (CBDC) in a "Twin-Rupee" architecture, where the CBDC serves as the settlement layer under RBI control, and the ARC acts as an agile interaction layer for faster, low-cost transactions.

Polygon's AggLayer architecture, powered by zero-knowledge (ZK) technology, ensures scalability and regulatory compliance. By enabling atomic delivery-versus-payment and conditional settlements, the platform supports tokenization of assets ranging from real estate to SME equity. Aishwary Gupta, Global Head of Payments at Polygon Labs, argues that blockchain is the "next foundational layer" for India's financial infrastructure, building on the success of UPI while addressing cross-border interoperability.

As of March 2025, Polygon's total value locked (TVL) has surged to $4.12 billion, outpacing Ethereum Layer 2s like Optimism and Arbitrum. Its native token, POL, now replaces MATIC, serving as a gas token, staking mechanism, and governance tool. This evolution underscores Polygon's commitment to building a scalable, efficient blockchain infrastructure tailored for global finance.

Anq Finance's Strategic Positioning: Bridging Traditional and Digital Finance

While Anq Finance's direct initiatives remain less detailed in public records, its partnership with Polygon highlights its role as a bridge between traditional Indian finance and emerging tokenized systems. The ARC project, for instance, leverages Anq's fintech expertise to create a sovereign-backed stablecoin that aligns with India's regulatory perimeter. By anchoring digital value to government debt, Anq and Polygon aim to reduce reliance on foreign-backed stablecoins like USDT or USDC, which face scrutiny in India's evolving crypto landscape.

Anq's market positioning is further strengthened by India's broader regulatory environment. SEBI's sandbox framework and AA-framework improvements for investor onboarding are creating fertile ground for tokenized asset platforms. With institutional investors seeking diversified portfolios and retail investors demanding accessible entry points, Anq's focus on compliance and user-friendly interfaces positions it to capture a significant share of the growing market.

Regulatory Tailwinds and Global Implications

India's regulatory approach to tokenization is cautiously progressive. While a blanket ban on private cryptocurrencies remains in place, the government has shown openness to regulated digital assets, particularly those with sovereign backing. The ARC project, for example, is designed to operate within India's financial perimeter, avoiding the volatility and regulatory risks associated with speculative crypto assets.

Globally, India's tokenization experiments could serve as a blueprint for emerging markets. The country's large population, growing blockchain talent pool, and cost-effective infrastructure make it an attractive testbed for tokenized finance. As Galaxy Research notes, tokenization is becoming the "new standard for institutional finance," with applications in treasuries, private credit, and real estate. India's strategic investments in blockchain partners like Polygon and Anq Finance are not just local opportunities but part of a larger trend reshaping global capital markets.

Conclusion: A Strategic Investment Thesis

For investors, India's tokenized financial infrastructure presents a compelling opportunity. The confluence of regulatory experimentation, institutional adoption, and technological innovation is creating a flywheel effect. Polygon's AggLayer and POL token, combined with Anq's sovereign-backed stablecoin initiatives, offer exposure to a market poised for 8.9% CAGR growth. As India transitions from a UPI-driven payments revolution to a tokenized asset economy, strategic investments in blockchain infrastructure partners will be critical to capturing long-term value.