Key Takeaways
- • McKinsey, working with blockchain analytics firm Artemis Analytics, estimated stablecoin payment activity reached around $390 billion in 2025, more than double the prior year, though still small relative to conventional payment networks.
- • A stablecoin is not the same as money in a bank account; its value depends on reserve backing, issuer financial strength, and redemption arrangements, with risks including inadequate reserves, issuer failure, loss of peg, cyberattacks and withdrawal restrictions.
- • Tokenisation represents asset ownership or claims digitally on a blockchain, but a digital representation does not automatically guarantee legal ownership, liquidity or investor protection, and a tokenised bond still carries the issuer's credit risk.
- • SEBI's Demat 2.0 pilot for tokenised corporate bonds is the Indian regulatory reference point for tokenisation.
- • Transfers of virtual digital assets in India may attract 1% TDS under Section 194S of the Income-tax Act, subject to thresholds and conditions.
Summary
Blockchain technology is being explored beyond crypto trading for cross-border payments, financial settlement and the digital representation of assets such as bonds. CNBC TV18 outlines two applications drawing attention: stablecoins, which aim to hold a relatively stable value, usually against a currency such as the US dollar, and tokenisation, which represents ownership rights or claims on assets digitally.
According to an analysis by McKinsey with blockchain analytics firm Artemis Analytics, stablecoin payment activity reached around $390 billion in 2025, more than double the previous year's level. The article cautions that this remains small compared with conventional payment networks and that blockchain transaction volumes should not automatically be equated with payments for goods and services.
Vikaas M Sachdeva, CEO of BitDelta India, said blockchain could reduce intermediaries and speed up settlement in certain cross-border transactions, but noted that India's existing rails, including UPI, IMPS and RTGS, already work efficiently. The article stresses that a stablecoin is not the same as money held in a bank account. Its stability depends on backing assets, issuer financial position and redemption arrangements, and risks include inadequate reserves, issuer failure, loss of the peg, cyberattacks and withdrawal restrictions. Sachdeva advised investors to examine the issuer, reserve disclosures, custody arrangements and redemption rights. A dollar-linked stablecoin is not the rupee and should not be assumed to be an RBI-authorised payment instrument.
On tokenisation, the article notes that a corporate bond, for example, could be represented by a digital token, potentially changing how ownership is recorded, transferred and settled. India is exploring this through SEBI's Demat 2.0 pilot for tokenised corporate bonds. Vikas Gupta, Country Manager – India at Bybit, said tokenisation could make settlement more efficient but does not automatically guarantee legal ownership, liquidity or investor protection. Sachdeva added that tokenisation improves how assets are held and transferred without changing the quality of the underlying investment.
The article recommends that investors assess issuer and backing, redemption and ownership rights, custody and security, and regulatory and tax obligations before using either product. It notes that transfers of virtual digital assets may attract TDS at 1% of consideration under Section 194S, subject to thresholds and conditions. The article concludes that blockchain changes how financial assets are recorded and transferred but does not eliminate investment risk.
According to an analysis by McKinsey with blockchain analytics firm Artemis Analytics, stablecoin payment activity reached around $390 billion in 2025, more than double the previous year's level. The article cautions that this remains small compared with conventional payment networks and that blockchain transaction volumes should not automatically be equated with payments for goods and services.
Vikaas M Sachdeva, CEO of BitDelta India, said blockchain could reduce intermediaries and speed up settlement in certain cross-border transactions, but noted that India's existing rails, including UPI, IMPS and RTGS, already work efficiently. The article stresses that a stablecoin is not the same as money held in a bank account. Its stability depends on backing assets, issuer financial position and redemption arrangements, and risks include inadequate reserves, issuer failure, loss of the peg, cyberattacks and withdrawal restrictions. Sachdeva advised investors to examine the issuer, reserve disclosures, custody arrangements and redemption rights. A dollar-linked stablecoin is not the rupee and should not be assumed to be an RBI-authorised payment instrument.
On tokenisation, the article notes that a corporate bond, for example, could be represented by a digital token, potentially changing how ownership is recorded, transferred and settled. India is exploring this through SEBI's Demat 2.0 pilot for tokenised corporate bonds. Vikas Gupta, Country Manager – India at Bybit, said tokenisation could make settlement more efficient but does not automatically guarantee legal ownership, liquidity or investor protection. Sachdeva added that tokenisation improves how assets are held and transferred without changing the quality of the underlying investment.
The article recommends that investors assess issuer and backing, redemption and ownership rights, custody and security, and regulatory and tax obligations before using either product. It notes that transfers of virtual digital assets may attract TDS at 1% of consideration under Section 194S, subject to thresholds and conditions. The article concludes that blockchain changes how financial assets are recorded and transferred but does not eliminate investment risk.
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