Zoho founder and ex-CEO Sridhar Vembu responded to Infosys co-founder Nandan Nilekani ’s X post about tokenisation of land assets . Talking about how 50% of assets owned by Indians is in the form of land which is tradeable, Nilekani shared an X post highlighting the importance of tokenisation of land. Sharing a minute-long video, he wrote “The time is right for another massive unlock: Tokenisation of land assets”. Replying to Nilekani’s post, Vembu voiced his concerns about the risks of treating land as a liquid asset.
He wrote:
This idea "tokenization of land assets to unlock wealth" relies on the crucial assumption "making every asset liquid and tradeable is always a value creating activity". In other words "make every asset more money like".
I call that assumption the Fundamental Axiom of Financialization.
“It is very seductive - after all, what is wrong with every asset being liquid and tradeable, being more money like?,” Vembu stated adding “ Yet when we financialize every asset and thereby increase their moneyness, it eventually would lead to extreme concentration. How so? As an example, a person with a gambling or drinking problem could now easily monetize a part of their home to fund their habit.”
“Is that far fetched? Not at all.”
Finance is seduction: Zoho’s Sridhar Vembu
In the post, Vembu further stated, “Finance is seduction. Companies would arise to offer "instant cash out" of tokens on farm land, homes and so on. I am afraid where this path would lead.”
He concluded saying “Ancient wisdom born of experience tells us that finance should be carefully controlled. Left unchecked, finance can lead to ruin.”
An X user replied to Vembu saying “Every tool is neutral until you pick it up. A knife can serve a meal or take a life. It’s never the tool — it’s the human behind it,”. To this, the Zoho founder hit back stating “We do regulate tools like dynamite!”.
He wrote:
This idea "tokenization of land assets to unlock wealth" relies on the crucial assumption "making every asset liquid and tradeable is always a value creating activity". In other words "make every asset more money like".
I call that assumption the Fundamental Axiom of Financialization.
This idea "tokenization of land assets to unlock wealth" relies on the crucial assumption "making every asset liquid and tradeable is always a value creating activity". In other words "make every asset more money like".
— Sridhar Vembu (@svembu) April 1, 2025
I call that assumption the Fundamental Axiom of… https://t.co/k5g5jvkJVG
“It is very seductive - after all, what is wrong with every asset being liquid and tradeable, being more money like?,” Vembu stated adding “ Yet when we financialize every asset and thereby increase their moneyness, it eventually would lead to extreme concentration. How so? As an example, a person with a gambling or drinking problem could now easily monetize a part of their home to fund their habit.”
“Is that far fetched? Not at all.”
Finance is seduction: Zoho’s Sridhar Vembu
In the post, Vembu further stated, “Finance is seduction. Companies would arise to offer "instant cash out" of tokens on farm land, homes and so on. I am afraid where this path would lead.”
He concluded saying “Ancient wisdom born of experience tells us that finance should be carefully controlled. Left unchecked, finance can lead to ruin.”
An X user replied to Vembu saying “Every tool is neutral until you pick it up. A knife can serve a meal or take a life. It’s never the tool — it’s the human behind it,”. To this, the Zoho founder hit back stating “We do regulate tools like dynamite!”.
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