India's gold loan market has witnessed significant expansion over the past year, with banks and non-banking financial companies (NBFCs) increasingly relying on gold-backed lending to meet consumer credit demand. However, recent signals of repayment stress among leading lenders suggest that the sector may need to look beyond the traditional security offered by physical gold.In October 2026, Bajaj Finance and Piramal Finance flagged early signs of stress in their gold loan portfolios. According to a Reuters report dated October 21, bank loans against gold increased 83% year-on-year to ₹5.6 lakh crore in August 2026, while NBFC gold loans grew 69% to ₹3.6 lakh crore.Piramal Finance also highlighted concerns around multiple borrowing, noting that nearly 35% of its customers had gold loans from another institution. Its management further indicated that approximately ₹4.7 lakh crore in industry-wide gold loan disbursements during FY26 went to customers who had other loans overdue by more than 90 days.These developments underline an important distinction in secured lending: the value of collateral does not necessarily reflect a borrower's ability to repay. While physical gold provides lenders with a tangible asset against which credit can be extended, it does not eliminate risks arising from over-leverage, multiple borrowing or weak repayment capacity.This is where gold tokenisation could become relevant to the future of India's lending ecosystem.<h2>Can tokenisation improve collateral transparency?</h2>Gold tokenisation involves representing ownership or an enforceable claim over physical gold through digital tokens. The underlying gold is generally held in secure custody, while the digital representation records the corresponding ownership or entitlement.For financial institutions, the potential extends beyond digitising gold ownership. A well-designed tokenisation framework could improve how lenders verify, track and manage collateral.For instance, digital records linked to independently verified gold holdings could make ownership, quantity and purity easier to establish. If integrated with an interoperable collateral registry, such infrastructure could also help lenders identify whether an asset has already been pledged elsewhere.This is particularly relevant in a market where borrowers may access gold-backed credit from multiple institutions. A common verification mechanism could potentially reduce duplicate pledging and improve transparency across participating lenders.Tokenisation could also simplify collateral administration. Where gold is held in regulated vaults, digital ownership and security-interest records could potentially be updated without repeatedly moving the underlying physical asset. Reliable valuation mechanisms could further support lenders in monitoring collateral coverage and loan-to-value ratios.However, these benefits would depend on secure custody, independent verification, legal recognition and participation across lending institutions. Blockchain-based records alone cannot guarantee that physical gold exists or prevent pledging outside the participating network.<h2>India's EGR framework offers a starting point</h2>India already has a regulatory framework for digitally representing physical gold through Electronic Gold Receipts (EGRs).Under the Securities and Exchange Board of India's (SEBI) framework, physical gold is deposited with a regulated vault manager, against which Electronic Gold Receipts are created through the depository system. These receipts are held in demat accounts and can be traded on recognised stock exchanges. Investors can also convert them into physical gold through the prescribed process.EGRs demonstrate how physical gold can be integrated into a regulated digital market structure, bringing together secure custody, standardised asset verification and electronic ownership records.However, EGRs and privately issued blockchain-based gold tokens are not interchangeable. EGRs operate within an established securities market framework, while other tokenisation models may involve different ownership structures, custody arrangements and regulatory considerations.There is also an important lending-related limitation. The RBI's Lending Against Gold and Silver Collateral Directions, 2025, permit lending against eligible gold jewellery, ornaments and coins while restricting lending against primary gold, including bullion, and financial assets backed by primary gold.Consequently, an EGR representing vaulted bullion cannot automatically be treated as eligible collateral for a conventional gold loan. Any such lending model would require regulatory clarity and appropriate legal recognition.<h2>Technology cannot replace responsible lending</h2>While tokenisation could strengthen collateral verification and management, it cannot address the underlying problem of borrower indebtedness.A lender may have complete visibility into the ownership, purity and valuation of pledged gold and still face repayment difficulties if the borrower lacks sufficient income or has accumulated excessive debt.The recent developments in the gold loan market reinforce the need for financial institutions to assess borrowers beyond the value of their collateral. Credit bureau checks, income assessment, borrower-level exposure monitoring and disciplined underwriting remain essential to responsible lending.Tokenisation should therefore complement existing risk management practices rather than replace them.For the technology to deliver meaningful value, India would also need an interoperable framework connecting lenders, custodians, depositories and other relevant institutions. Clear rules around digital ownership, security interests, custody and default resolution would be equally important.<h2>Building a more transparent gold-backed lending ecosystem</h2>India's gold loan market continues to present significant opportunities for financial institutions, particularly as households seek accessible credit against existing assets. However, its rapid expansion also makes stronger collateral management and borrower-level risk assessment increasingly important.Tokenisation could contribute to this evolution by improving asset traceability, enabling more efficient collateral administration and supporting transparent ownership records. Its immediate opportunity may not lie in replacing traditional gold loans but in strengthening the digital infrastructure surrounding them.Ultimately, the resilience of India's gold-backed lending ecosystem will depend on more than the value of the gold held as collateral. It will require reliable asset verification, responsible credit assessment and regulatory frameworks that allow financial innovation to operate within clearly defined safeguards.As the market evolves, the larger opportunity may be to move from simply lending against physical gold towards building a more transparent, verifiable and accountable gold-backed financial ecosystem.

While physical gold provides lenders with a tangible asset against which credit can be extended, it does not eliminate risks arising from over-leverage, multiple borrowing or weak repayment capacity.

India's gold loan market has witnessed significant expansion over the past year, with banks and non-banking financial companies (NBFCs) increasingly relying on gold-backed lending to meet consumer credit demand. However, recent signals of repayment stress among leading lenders suggest that the sector may need to look beyond the traditional security offered by physical gold. In October 2026, Bajaj Finance and Piramal Finance flagged early signs of stress in their gold loan portfolios. According to a Reuters report dated October 21, bank loans against gold increased 83% year-on-year to ₹5.6 lakh crore in August 2026, while NBFC gold loans grew 69% to ₹3.6 lakh crore. Piramal Finance also highlighted concerns around multiple borrowing, noting that nearly 35% of its customers had gold loans from another institution. Its management further indicated that approximately ₹4.7 lakh crore in industry-wide gold loan disbursements during FY26 went to customers who had other loans overdue by more than 90 days. These developments underline an important distinction in secured lending: the value of collateral does not necessarily reflect a borrower's ability to repay. While physical gold provides lenders with a tangible asset against which credit can be extended, it does not eliminate risks arising from over-leverage, multiple borrowing or weak repayment capacity. This is where gold tokenisation could become relevant to the future of India's lending ecosystem. Can tokenisation improve collateral transparency? Gold tokenisation involves representing ownership or an enforceable claim over physical gold through digital tokens. The underlying gold is generally held in secure custody, while the digital representation records the corresponding ownership or entitlement. For financial institutions, the potential extends beyond digitising gold ownership. A well-designed tokenisation framework could improve how lenders verify, track and manage collateral. For instance, digital records linked to independently verified gold holdings could make ownership, quantity and purity easier to establish. If integrated with an interoperable collateral registry, such infrastructure could also help lenders identify whether an asset has already been pledged elsewhere. This is particularly relevant in a market where borrowers may access gold-backed credit from multiple institutions. A common verification mechanism could potentially reduce duplicate pledging and improve transparency across participating lenders. Tokenisation could also simplify collateral administration. Where gold is held in regulated vaults, digital ownership and security-interest records could potentially be updated without repeatedly moving the underlying physical asset. Reliable valuation mechanisms could further support lenders in monitoring collateral coverage and loan-to-value ratios. However, these benefits would depend on secure custody, independent verification, legal recognition and participation across lending institutions. Blockchain-based records alone cannot guarantee that physical gold exists or prevent pledging outside the participating network. India's EGR framework offers a starting point India already has a regulatory framework for digitally representing physical gold through Electronic Gold Receipts (EGRs). Under the Securities and Exchange Board of India's (SEBI) framework, physical gold is deposited with a regulated vault manager, against which Electronic Gold Receipts are created through the depository system. These receipts are held in demat accounts and can be traded on recognised stock exchanges. Investors can also convert them into physical gold through the prescribed process. EGRs demonstrate how physical gold can be integrated into a regulated digital market structure, bringing together secure custody, standardised asset verification and electronic ownership records. However, EGRs and privately issued blockchain-based gold tokens are not interchangeable. EGRs operate within an established securities market framework, while other tokenisation models may involve different ownership structures, custody arrangements and regulatory considerations. There is also an important lending-related limitation. The RBI's Lending Against Gold and Silver Collateral Directions, 2025, permit lending against eligible gold jewellery, ornaments and coins while restricting lending against primary gold, including bullion, and financial assets backed by primary gold. Consequently, an EGR representing vaulted bullion cannot automatically be treated as eligible collateral for a conventional gold loan. Any such lending model would require regulatory clarity and appropriate legal recognition. Technology cannot replace responsible lending While tokenisation could strengthen collateral verification and management, it cannot address the underlying problem of borrower indebtedness. A lender may have complete visibility into the ownership, purity and valuation of pledged gold and still face repayment difficulties if the borrower lacks sufficient income or has accumulated excessive debt. The recent developments in the gold loan market reinforce the need for financial institutions to assess borrowers beyond the value of their collateral. Credit bureau checks, income assessment, borrower-level exposure monitoring and disciplined underwriting remain essential to responsible lending. Tokenisation should therefore complement existing risk management practices rather than replace them. For the technology to deliver meaningful value, India would also need an interoperable framework connecting lenders, custodians, depositories and other relevant institutions. Clear rules around digital ownership, security interests, custody and default resolution would be equally important. Building a more transparent gold-backed lending ecosystem India's gold loan market continues to present significant opportunities for financial institutions, particularly as households seek accessible credit against existing assets. However, its rapid expansion also makes stronger collateral management and borrower-level risk assessment increasingly important. Tokenisation could contribute to this evolution by improving asset traceability, enabling more efficient collateral administration and supporting transparent ownership records. Its immediate opportunity may not lie in replacing traditional gold loans but in strengthening the digital infrastructure surrounding them. Ultimately, the resilience of India's gold-backed lending ecosystem will depend on more than the value of the gold held as collateral. It will require reliable asset verification, responsible credit assessment and regulatory frameworks that allow financial innovation to operate within clearly defined safeguards. As the market evolves, the larger opportunity may be to move from simply lending against physical gold towards building a more transparent, verifiable and accountable gold-backed financial ecosystem.

While physical gold provides lenders with a tangible asset against which credit can be extended, it does not eliminate risks arising from over-leverage, multiple borrowing or weak repayment capacity.

India’s gold loan boom has a hidden risk. Can tokenisation help lenders tackle it?

The Defence Research and Development Organisation (DRDO), under its Technology Development Fund (TDF) programme, has awarded a project titled ‘Security Analysis and Auditing of Blockchain’ to Mangaluru-based Zupple Labs Pvt Ltd. DRDO’s Scientific Analysis Group will serve as the nodal laboratory for the project.&nbsp;Zupple Labs is a start-up specialising in digital credentials and enterprise-grade blockchain solutions. The project aims to contribute to the standardisation and evaluation of blockchain technologies required for defence applications.Neil Kevin Martis, Chief Executive Officer and Co-Founder of Zupple Labs, said in an interview that the defence sector could begin adopting blockchain technology for various applications over the next few years. However, there is currently no standard framework to evaluate applications being developed or deployed in the defence sector.&nbsp;Citing an example, he said defence forces would need a highly secure blockchain-based application to track supply-chain items across the country, as conventional digital systems might not meet their requirements. Various Indian government agencies cannot operate on public blockchains. They could instead use private blockchain networks, which are customisable internal systems, he said. Even if defence forces decide to implement such a system, it would have to undergo a series of standard tests before being commissioned.&nbsp;<a href="https://www.wionews.com/business-economy/is-tokenisation-future-of-finance-wion-launches-finance-forward-at-india-blockchain-week-1793546412108">Also Read: Is tokenisation future of finance? WION launches Finance Forward at India Blockchain Week</a>&nbsp;He noted that the absence of such standards in the blockchain space is a key gap that the project seeks to address. It aims to develop a standardised platform through which defence-grade blockchain applications can be graded. Zupple Labs specialises in building blockchain-powered trust infrastructure for governments and institutions across four countries. Its solutions are used to secure and authenticate critical citizen records, including land records, educational credentials, identities, permits and work orders.&nbsp;Congratulating Zupple Labs on securing a project under DRDO’s TDF programme, Capt Brijesh Chowta, Member of Parliament from Dakshina Kannada, said: “Glad to see Zupple Labs, one of the 10 start-ups in this year’s ‘Bolpu’ cohort, making strides in strengthening the security and resilience of blockchain technology and contributing to India’s growing cybersecurity capabilities.”&nbsp;‘Bolpu’ is a one-year accelerator programme designed specifically to support start-ups and early-stage ventures based in Mangaluru. It provides a support ecosystem comprising funding, mentorship, market access and ongoing advisory to help entrepreneurs build, launch and scale their businesses. ‘Bolpu’ means light or day in the Tulu language.

DRDO awards Mangaluru-based Zupple Labs a Technology Development Fund project to develop a standardised blockchain security and auditing framework for defence applications

The Defence Research and Development Organisation (DRDO), under its Technology Development Fund (TDF) programme, has awarded a project titled ‘Security Analysis and Auditing of Blockchain’ to Mangaluru-based Zupple Labs Pvt Ltd. DRDO’s Scientific Analysis Group will serve as the nodal laboratory for the project. Zupple Labs is a start-up specialising in digital credentials and enterprise-grade blockchain solutions. The project aims to contribute to the standardisation and evaluation of blockchain technologies required for defence applications. Neil Kevin Martis, Chief Executive Officer and Co-Founder of Zupple Labs, said in an interview that the defence sector could begin adopting blockchain technology for various applications over the next few years. However, there is currently no standard framework to evaluate applications being developed or deployed in the defence sector. Citing an example, he said defence forces would need a highly secure blockchain-based application to track supply-chain items across the country, as conventional digital systems might not meet their requirements. Various Indian government agencies cannot operate on public blockchains. They could instead use private blockchain networks, which are customisable internal systems, he said. Even if defence forces decide to implement such a system, it would have to undergo a series of standard tests before being commissioned. Also Read: Is tokenisation future of finance? WION launches Finance Forward at India Blockchain Week He noted that the absence of such standards in the blockchain space is a key gap that the project seeks to address. It aims to develop a standardised platform through which defence-grade blockchain applications can be graded. Zupple Labs specialises in building blockchain-powered trust infrastructure for governments and institutions across four countries. Its solutions are used to secure and authenticate critical citizen records, including land records, educational credentials, identities, permits and work orders. Congratulating Zupple Labs on securing a project under DRDO’s TDF programme, Capt Brijesh Chowta, Member of Parliament from Dakshina Kannada, said: “Glad to see Zupple Labs, one of the 10 start-ups in this year’s ‘Bolpu’ cohort, making strides in strengthening the security and resilience of blockchain technology and contributing to India’s growing cybersecurity capabilities.” ‘Bolpu’ is a one-year accelerator programme designed specifically to support start-ups and early-stage ventures based in Mangaluru. It provides a support ecosystem comprising funding, mentorship, market access and ongoing advisory to help entrepreneurs build, launch and scale their businesses. ‘Bolpu’ means light or day in the Tulu language.

DRDO awards Zupple Labs a TDF project to develop a standardised security auditing framework for blockchain technologies used in defence

DRDO awards blockchain security and auditing project to Mangaluru-based Zupple Labs

The European Central Bank (ECB), alongside the European Commission and the European Securities and Markets Authority (ESMA), has invited wholesale financial industry stakeholders to express their interest in joining the European Tokenisation Standards Group (ETSG). The group will bring together industry participants to develop common standards aimed at creating an interconnected tokenised financial ecosystem.&nbsp;The ETSG intends to establish a framework for monitoring compliance with the agreed standards. It may also develop recommendations for EU authorities on potential measures to incentivise adherence to these standards. The group's activities will be market-driven and guided by industry contributions and consensus. Industry participants will chair the ETSG, while the ECB, European Commission and ESMA will participate as observers.&nbsp;Also Read: <a href="https://www.wionews.com/world/us-fda-orders-new-safety-warnings-on-weight-loss-drugs-over-potential-risk-of-vision-loss-1794279276337">US FDA orders new safety warnings on weight-loss drugs over potential risk of vision loss</a>&nbsp;Participation is open to a broad range of stakeholders, including EU associations, private entities, global institutions, fintech companies and technical providers involved in tokenisation or distributed ledger technology (DLT)-based financial services, in line with the group's mandate outlined in Annex 1. The European Commission (EC) has been actively promoting the wider adoption of tokenisation through legislative proposals aimed at removing regulatory barriers to innovation in distributed ledger technology (DLT).&nbsp;In its statement of July 2026, the EuroGroup said that, “Without shared standards, the multiplication of DLT networks risks recreating and compounding the fragmentation that we have been trying hard to overcome in the EU financial and payment systems. The EU should therefore seize this historic opportunity and engage in setting common standards and promoting interoperability, both among different DLT networks and between DLTs and traditional system.”&nbsp;Interested industry stakeholders and public bodies are invited to review the additional background information and submit their responses to the call for nominations, as detailed in Annex 2. The deadline for submitting applications is 27 November 2026.

ECB, European Commission and ESMA invite industry stakeholders to join the European Tokenisation Standards Group. Apply by 27 November 2026

The European Central Bank (ECB), alongside the European Commission and the European Securities and Markets Authority (ESMA), has invited wholesale financial industry stakeholders to express their interest in joining the European Tokenisation Standards Group (ETSG). The group will bring together industry participants to develop common standards aimed at creating an interconnected tokenised financial ecosystem. The ETSG intends to establish a framework for monitoring compliance with the agreed standards. It may also develop recommendations for EU authorities on potential measures to incentivise adherence to these standards. The group's activities will be market-driven and guided by industry contributions and consensus. Industry participants will chair the ETSG, while the ECB, European Commission and ESMA will participate as observers. Also Read: US FDA orders new safety warnings on weight-loss drugs over potential risk of vision loss Participation is open to a broad range of stakeholders, including EU associations, private entities, global institutions, fintech companies and technical providers involved in tokenisation or distributed ledger technology (DLT)-based financial services, in line with the group's mandate outlined in Annex 1. The European Commission (EC) has been actively promoting the wider adoption of tokenisation through legislative proposals aimed at removing regulatory barriers to innovation in distributed ledger technology (DLT). In its statement of July 2026, the EuroGroup said that, “Without shared standards, the multiplication of DLT networks risks recreating and compounding the fragmentation that we have been trying hard to overcome in the EU financial and payment systems. The EU should therefore seize this historic opportunity and engage in setting common standards and promoting interoperability, both among different DLT networks and between DLTs and traditional system.” Interested industry stakeholders and public bodies are invited to review the additional background information and submit their responses to the call for nominations, as detailed in Annex 2. The deadline for submitting applications is 27 November 2026.

ECB, European Commission and ESMA invite financial stakeholders to join the ETSG and develop common tokenisation standards by 27 November 2026

EU calls for nominations to stakeholder group on financial tokenisation standards

Binance’s finance chief, Kaiser Ng, has stepped down from the company to pursue another venture, the world’s biggest cryptocurrency exchange confirmed. The announcement came days after hackers stole $6.3 billion from the platform in a record heist. Following his resignation, Justin Yek, a longtime finance executive who was recently vice-president of finance at Airwallex, is set to take over as the new CFO. In a statement on Saturday (November 7), Binance Co-Chief Executive Officer Yi He said, "Kaiser Ng has decided to pursue a new venture after more than five years at Binance, with a transition plan implemented over the last half year".&nbsp;Also read: <a href="https://www.wionews.com/world/pakistan-s-rs-316-billion-hydropower-project-halted-as-rock-collapse-hits-protective-barrier-no-casualties-1794227301634">Pakistan’s Rs 316-billion Hydropower Project halted as rock collapse hits protective barrier, no casualti</a>es<h3>Binance major hack</h3>This follows roughly a week after Binance disclosed a major hack in which attackers made off with cryptocurrency through an elaborate scheme that had actually been in motion for months. According to Binance, the breach occurred on October 29 and traced back to malware slipped in via software downloads and bogus job-recruitment lures aimed at its engineers. The exchange has pledged to make affected customers whole. The FBI has pointed to a North Korean hacking outfit as responsible for the theft, a claim North Korea has rejected. Ng, who has served as Binance’s CFO since January 2022, previously worked at competing exchange Kraken, per his LinkedIn profile.

 Binance confirmed the breach occurred on October 29 and was traced back to malware slipped in via software downloads and bogus job-recruitment lures aimed at its engineers. The exchange has pledged to make affected customers whole.

Binance’s finance chief, Kaiser Ng, has stepped down from the company to pursue another venture, the world’s biggest cryptocurrency exchange confirmed. The announcement came days after hackers stole $6.3 billion from the platform in a record heist. Following his resignation, Justin Yek, a longtime finance executive who was recently vice-president of finance at Airwallex, is set to take over as the new CFO. In a statement on Saturday (November 7), Binance Co-Chief Executive Officer Yi He said, "Kaiser Ng has decided to pursue a new venture after more than five years at Binance, with a transition plan implemented over the last half year". Also read: Pakistan’s Rs 316-billion Hydropower Project halted as rock collapse hits protective barrier, no casualties Binance major hack This follows roughly a week after Binance disclosed a major hack in which attackers made off with cryptocurrency through an elaborate scheme that had actually been in motion for months. According to Binance, the breach occurred on October 29 and traced back to malware slipped in via software downloads and bogus job-recruitment lures aimed at its engineers. The exchange has pledged to make affected customers whole. The FBI has pointed to a North Korean hacking outfit as responsible for the theft, a claim North Korea has rejected. Ng, who has served as Binance’s CFO since January 2022, previously worked at competing exchange Kraken, per his LinkedIn profile.

&nbsp;Binance confirmed the breach occurred on October 29 and was traced back to malware slipped in via software downloads and bogus job-recruitment lures aimed at its engineers. The exchange has pledged to make affected customers whole.

Binance CFO Kaiser Ng quits days after $6.3 billion crypto heist rocks exchange, Justin Yek named new finance chief

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India’s gold loan boom has a hidden risk. Can tokenisation help lenders tackle it?

DRDO taps Zupple Labs to develop blockchain security evaluation framework

EU seeks industry nominations for group on tokenisation standards in finance

Binance CFO Kaiser Ng quits days after $6.3 billion crypto heist rocks exchange