Zoho's Sridhar Vembu explains why Infosys co-founder Nandan Nilekani's plan to tokenise land is 'seductive, but...'

Infosys co-founder Nandan Nilekani has proposed a revolutionary solution: the tokenisation of land. He suggests digitising land titles and making them tradable on a blockchain ledger, like stocks or bonds. This could transform dormant assets into active resources, making it easier for landowners to access capital for business ventures or loans.

However, Sridhar Vembu, founder of Zoho Corporation, has raised a critical counterpoint. In a recent post on X (formerly Twitter), Vembu expressed his concerns about the potential dangers of turning land into a liquid asset. While Nilekani envisions a future where landowners can unlock the value of their property, Vembu fears that increased liquidity could lead to exploitation, especially among vulnerable individuals.

The Promise of Tokenisation: Unlocking Wealth

Nandan Nilekani's vision hinges on a simple yet powerful idea: 50% of India’s assets are in land, but much of this wealth remains inaccessible. Land that cannot be sold or used as collateral for loans essentially sits idle, untapped and unable to contribute to financial growth. Nilekani proposes that tokenising land would digitise the title deeds, making them tradable on a secure ledger. This would allow landowners to either sell their land or use it as collateral for loans, thus unlocking its economic potential.


“This land is an asset, but you cannot do anything with it,” Nilekani said. “You can’t sell it, you can’t take a loan against it. It’s like an asset that’s there, but it’s just sitting there, unable to be utilised.” His solution is to bring land into the financial fold, transforming it from a passive asset into something that can fuel business, investments, and broader economic activity.

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