India plans first tokenised bond issue in September, sources say
India is set to launch its first tokenized corporate bonds next month, marking a significant step in integrating blockchain technology into the nation's financial infrastructure. State-owned power financier REC will issue these bonds, valued at less than 5 billion rupees ($57 million), to test instant settlement capabilities. The initiative involves a collaboration between India’s central bank and market regulators to modernize issuance and trading processes. Investors will utilize the country's central bank digital currency (CBDC) to purchase the tokens, requiring both a wholesale digital currency wallet and a new electronic securities wallet known as DEMAT 2.0. This pilot program restricts participation to a select group of investors, with a secondary market expected to emerge by December. By adopting distributed ledger technology, India aims to align its capital markets with global leaders like Europe and Hong Kong. This development underscores the growing institutional shift toward blockchain-based settlement to enhance efficiency and reduce transaction times in debt markets.
- ▸REC will issue tokenized corporate bonds worth under 5 billion rupees ($57 million).
- ▸Purchases require India's CBDC and a new DEMAT 2.0 electronic securities wallet.
- ▸Secondary market trading for the tokenized bonds is expected to launch by December.
- ▸The pilot program utilizes distributed ledger technology to enable instant bond settlement.
REC Limited, formerly Rural Electrification Corporation, is a state-owned infrastructure finance company in India that provides long-term loans for power sector projects. Tokenized bonds represent a digital transformation of traditional debt securities, where ownership and settlement are managed via blockchain rather than legacy clearing systems. This process typically replaces manual reconciliation with automated smart contracts to achieve near-instantaneous transaction finality.