Credit: Reuters Photo
From Web3 developers to crypto exchanges, crypto investors and founders, all enthusiasts gathered at the India Blockchain Week (IBW) conference held last week in Bengaluru. The energy was electric as experts spoke about the crypto ecosystem, the link between robotics and stablecoins, and the country's path towards a stable regulatory network. Let's deep dive into Web3 ecosystem:
Web3 and Blockchain
While Web 1.0 was 'read-only' internet (users could only read information) and Web 2.0 was interactive (users can create as well as share content), Web3 is the concept that focuses on decentralisation, user ownership and blockchain technology.
"Blockchain has proven to change the way almost every industry functions. At its core, Web3 aims to give people more control over their data and digital assets, reducing dependence on large centralised platforms," Mudrex CEO Edul Patel said.
Based in Bengaluru, Mudrex is a crypto buying, trading and investment platform. He also added that in the future, we can expect Web3 to power new forms of digital identity, smarter financial systems, and global payments that are faster and cheaper. For businesses, blockchain will make processes more efficient, especially in areas like supply-chain, contracts, and record-keeping.
Where does India stand when it comes to Web3?
India has strengthened its role as a Web3 hub this year as Hashed Emergent, the venture capital arm of Hashed, pointed out at the IBW conference that the first ten months of 2025 saw $653 million in funds raised by Web3 startups across 45 deals. This is up 16% over the entire funding raised in 2024.
Hashed Emergent invests at the earliest stages of Web3 startups and in its report India Web3 Landscape 2025, it said the surge in funding was led by international funds with tailwinds including favourable global regulations and major improvements in underlying technology enabling viability of Web3 solutions. Also, the country leads in Web3 wallet usage, and Hashed Emergent pointed out that this is a strong indication of on-chain activity.
It said that the country has vast potential for stablecoin adoption and can learn from global peers in blockchain and stablecoin regulations. Stablecoin, a type of cryptocurrency, is designed with an aim to keep its value fixed.
But the country maintains a cautious regulatory stance toward Web3, and that there is no crypto law or regulator.
Hashed Emergent CEO and Managing partner Tak Lee said that one in five Web3 developers worldwide is Indian. Almost all of them incorporate their companies abroad, because they can't access proper fundraising structures here.
Indian VCs have over $20 billion in unallocated capital, but less than 1% goes to Web3.
The report pointed out that tokenised securities and stablecoins have not made a mark due to legal grey hairs.
Crypto exchange CoinDCX in its recent report said 2025 was the breakout year for tokenised real-world assets (RWAs), where traditional finance and blockchain converged.
It said BlackRock, Franklin Templeton and Hamilton Lane launched tokenised fund units on Ethereum and Stellar, crossing $15 billion in combined value.
CoinDCX noted that India can draw from global regulatory progress to build a stronger and more resilient digital asset ecosystem. "A unified regulatory framework could streamline oversight, reduce ambiguity and provide clarity for retail users, institutions, and exchanges," the crypto exchange, which has over 2 crore users, said.
How can crypto benefit from Web3 and blockchain?
Crypto stands to gain significantly as Web3 and blockchain continue to grow. Since crypto is built on blockchain, every advancement in this technology directly strengthens the crypto ecosystem, explained Patel.
Web3 encourages true digital ownership. Whether users are buying NFTs (non-fungible tokens), accessing decentralised apps, or interacting with smart contracts, they need crypto to participate. This naturally expands the user base. Additionally, crypto enables fast, low-cost, global payments aligned with Web3’s borderless nature. As Web3 services scale globally, demand for crypto as a payment and settlement layer will grow, he further said.
The absence of clear regulations remains a key barrier to crypto adoption. "While global markets are moving faster, India still has ground to cover. With India contributing to over 17% of the world’s Web3 talent, we need policies that attract this talent back home and enable them to build global products from here. Supportive measures like R&D incentives, regulatory sandboxes, and innovation-focused funding will help India stay competitive in this rapidly evolving space," Patel added.
Highlights - TRENDS THAT MATTER n At its core, Web3 aims to give people more control over their data and digital assets n India has strengthened its role as a Web3 hub this year n Funds to the tune of $65 million were raised in first ten months of 2025 by Web3 startups across 45 deals n The country has vast potential for the adoption of stablecoin n CoinDCX in its recent report says 2025 was the breakout year for tokenised real-world assets n The absence of clear regulations remains a key barrier to crypto adoption