India's Blockchain Gambit: Sovereign Tokenisation to Modernize Financial Systems

India's Economic Advisor Meets Polygon to Discuss Tokenisation and Sovereign Digital Assets

India's economic advisor to Prime Minister Narendra Modi, Sanjeev Sanyal, recently convened a high-level meeting with senior executives from Polygon Labs and fintech firm Anq Finance in New Delhi to chart the next phase of the country's blockchain and digital-asset strategy. The discussions centered on tokenisation frameworks, sovereign-backed digital currencies, and the integration of blockchain infrastructure into India's financial architecture, signaling a strategic pivot toward leveraging decentralized technologies for systemic modernisation.

A key focus of the meeting was the exploration of tokenising government-backed financial instruments and issuing sovereign-linked digital assets.

Polygon and Anq Finance presented a proposed blockchain-native instrument, the Asset Reserve Certificate (ARC), collateralised by Indian government securities such as Treasury Bills and G-Secs. This model aims to establish a secure digital settlement unit backed by sovereign guarantees, diverging from reliance on privately issued stablecoins. The ARC framework, if implemented, could enhance transparency, reduce settlement risks, and streamline transactions across India's financial ecosystem.

Participants emphasized the potential benefits of tokenisation, including faster settlement speeds, improved interoperability, and heightened market efficiency. However, the dialogue also underscored the necessity of robust regulatory oversight and alignment with existing financial-market infrastructure. With India's rapid adoption of digital-public-goods platforms, the prospect of on-chain tokenisation of real-world assets marks a critical step in modernizing the country's financial systems.

The engagement reflects India's broader intent to deepen its exploration of blockchain-enabled infrastructure, moving beyond pilot projects toward strategic planning. As the nation evaluates central bank digital currency (CBDC) frameworks, enhances cross-border payment systems, and expands digital identity platforms, collaborations with blockchain networks like Polygon could play a pivotal role in enabling secure, scalable tokenisation layers. This aligns with global trends where governments increasingly view tokenisation as a tool to bolster economic resilience and unlock capital-market efficiencies.

For Polygon Labs, the meeting reinforces its position as a key infrastructure partner in one of the world's largest emerging digital markets. The company's expertise in blockchain solutions positions it to support India's evolving financial landscape, particularly in developing interoperable architectures that bridge traditional and digital finance. Continued collaboration between public-sector institutions and technology providers will be vital to navigating regulatory complexities and fostering institutional readiness.

Looking ahead, the outcomes of these discussions could shape policy decisions on digital-asset deployments, tokenised government securities, and blockchain-based settlement systems. The meeting represents a significant milestone in India's long-term strategy to harmonize traditional finance with next-generation digital infrastructure, potentially paving the way for large-scale tokenisation across the economy.