This study examines the implementation and adoption of tokenization within the Indian financial system amid the advancement of digital public infrastructure. Tokenization allows the digital representation of actual financial assets via distributed ledger technology, providing benefits like enhanced efficiency, greater transparency, and better settlement processes The research employs primary data collected through a structured survey to examine the impact of organizational readiness, technological capabilities, regulatory conditions, appropriateness of India-focused infrastructure, as well as talent and cost factors on the adoption of tokenization. Data analysis was conducted with SPSS software, employing descriptive statistics and multiple linear regression analysis. The results show that organizational readiness, technological capabilities, regulatory conditions, and factors related to talent and costs greatly impact adoption; however, infrastructure compatibility unique to India does not demonstrate a statistically significant direct effect. The findings suggest that regulatory support and institutional readiness are more conclusive than mere infrastructure availability. The research provides empirical evidence for the emerging understanding of financial tokenization and insights for creating a scalable and institutionally compatible financial tokenization framework in India.