RBI explores tokenising gold amid push to expand Unified Markets Interface - The Economic Times

India’s central bank is reportedly examining the tokenisation of gold as part of a broader effort to expand the Unified Markets Interface (UMI). In simple terms, this would involve converting physical gold into digital tokens on a blockchain, with each token representing a unit of the underlying metal. The move is consistent with the RBI’s ongoing push to modernise financial infrastructure, allowing assets like gold to be traded, settled, or used as collateral with greater speed and transparency.

The potential relevance here is structural rather than immediate. Tokenised gold could lower entry barriers for retail investors by enabling fractional ownership and reducing storage costs. It may also improve liquidity for institutional players, as digital tokens can move across the UMI ecosystem more efficiently than physical bullion. For the broader market, this signals a gradual shift toward asset digitisation within regulated frameworks, a trend that has been gaining momentum globally.

What to watch is the RBI’s stated framework—whether these tokens will be treated as securities, commodities, or a new asset class entirely. Also important is the pace of integration with existing clearing and settlement systems. While no timeline or specific operational details have been confirmed, the exploration itself underscores a growing official interest in bridging traditional finance with blockchain-based rails.