CineNow plans to tokenize a $150 million Indian film fund by late 2027, but its capital markets director says legal rights, custody and verified cash flows will determine adoption.
The next wave of tokenized financial assets will need to prove their underlying value and investor protections rather than rely solely on blockchain infrastructure, according to Hamed Faqirzai, director of tokenisation and capital markets at CineNow.
In a written interview with Crypto Briefing, Faqirzai said expanding tokenization beyond stocks and US Treasuries will require clear legal ownership, transparent cash flows and independent verification to attract institutional capital.
His comments follow the October 28 launch of the Depository Trust & Clearing Corporation’s Tokenization Service, initially supporting select Russell 1000 stocks, major index ETFs and US Treasuries.
Faqirzai said those assets already have deep liquidity, transparent pricing and established legal ownership, meaning their tokenization primarily tests the infrastructure. Less conventional assets must also demonstrate who controls the underlying rights, how revenue reaches investors and how financial information is verified.
Private credit leads lending against tokenized assets
Faqirzai pointed to private credit as an example of where tokenization can provide financial benefits beyond traditional markets.
According to a Chainalysis report, US Treasuries represented 42.8% of tokenized real world assets, yet lending against them declined 23%, while private credit accounted for 77% of lending against such assets.
The number of wallets lending against private credit grew 1,618% over the year to July.
Faqirzai said Treasuries already benefit from established repurchase agreement markets, while tokenized private credit gains additional utility when it can be used as collateral for borrowing.
CineNow targets $150M tokenized film fund by late 2027
CineNow plans to deploy a $150 million fund across more than 30 Indian films over six years, with tokenized fund units backed by a diversified portfolio of film intellectual property.
The company is targeting issuance in the fourth quarter of 2027, subject to legal, regulatory and technology approvals. The project is being developed from the UAE, with access limited to eligible professional and qualified investors.
Faqirzai said film portfolios should be valued similarly to credit or infrastructure investments, with contracted revenues from streaming, satellite and music rights providing the foundation while box office performance remains the most volatile component.
He said revenues should flow through segregated accounts, with independent administrators reconciling distributor statements, regular reporting to investors and annual audits.
Liquidity presents another challenge. An October IMF report found that the five most liquid tokenized US equities were approximately 1.5 times as volatile as their underlying shares.
Faqirzai said niche assets such as film rights will require standardized disclosures, reliable transfer rules and market makers quoting prices among qualified investors. Periodic transfers within permissioned markets are likely to emerge before continuous trading becomes practical.
Asked what determines whether tokenized assets attract buyers, Faqirzai ranked legal structure first, followed by custody and financial disclosure, pointing to DTCC’s model of preserving the legal rights of underlying securities.
“No wrapper, however well built, rescues an asset investors don’t want to own,” he said.
