Goyal says tokenized real assets could reshape fintech infrastructure

Real-world asset tokenization could expand investor access to traditionally harder-to-trade markets and reduce settlement friction, according to Arun Goyal, managing director at Octal IT Solution. In an external opinion published by Finextra, Goyal argued that representing asset ownership through blockchain-based tokens may affect markets including real estate, bonds, private equity, commodities and art.

Goyal presented the technology as a potential fintech growth area because it can divide ownership of a physical or financial asset into digital units. Those tokens can represent a share of ownership or an economic claim linked to the underlying asset, while a blockchain records transfers among approved participants.

How the model works

Under tokenization, an asset such as a commercial building, bond, invoice, carbon credit or commodity is connected to digital tokens. Investors can then hold a fraction of the asset rather than buying it in full, according to Goyal.

The approach relies on several layers of infrastructure. Goyal listed blockchain networks, smart contracts, digital identity checks, token standards, secure wallets, multi-signature custody, anti-money laundering controls, know-your-customer processes, API connections, fraud detection, encryption and cloud systems as components of an enterprise-grade platform.

Smart contracts can be used to automate tasks that are often manual in conventional asset markets, including ownership transfers, income distribution, compliance checks and reporting, Goyal wrote. The technology does not remove the need for legal and regulatory controls, because the token must remain tied to a verified real-world asset.

Markets in scope

Goyal said real estate is one of the most visible applications, as fractional ownership can allow more than one investor to participate in commercial or residential projects. He also identified private equity, trade finance, carbon credits, commodities and infrastructure projects as areas where tokenization may be applied.

In trade finance, invoices and receivables can be represented digitally to broaden financing options, according to Goyal. In green finance, he said tokenized carbon credits and sustainability-linked assets may improve reporting and increase participation. For commodities such as gold, silver and agricultural products, digital representation can simplify ownership records and transfers.

The argument rests partly on the limits of existing processes. Goyal cited commercial real estate transactions as an example of a market that can involve brokers, lawyers, custodians, banks and regulators, with ownership checks, documentation and settlement taking days or weeks. He also noted that private equity often has high minimum investment requirements, limiting participation to institutions and wealthy investors.

Compliance remains central

Goyal said the sector faces material barriers before broader adoption. Regulatory treatment varies by jurisdiction, and organizations must address securities rules, digital asset requirements and compliance duties before launching platforms.

Asset verification is another constraint. A blockchain can show token ownership, but the underlying asset still requires due diligence and a legal structure connecting it to token holders, according to Goyal. Cybersecurity, custody, encryption and multi-factor authentication are also required to protect platforms and users.

Interoperability across blockchain systems and investor education were also listed as issues. Goyal said tokenization should connect with wider financial services infrastructure, including payments, lending, wealth management, compliance and digital identity, rather than operating as a stand-alone blockchain product.

Finextra identified the piece as external author content published without editing and reflecting the author’s views. Goyal’s central claim is that tokenization is developing alongside established finance and may improve efficiency and access where governance, compliance and customer confidence are in place.

This story draws on original reporting from Finextra Research.