L&T Becomes India’s First Private Sector Corporate to Issue Tokenised Bond
Larsen & Toubro (L&T) has officially become the first private sector corporation in India to issue tokenized bonds, raising ₹500 crore with a 3-year tenure. This issuance was conducted under the Securities and Exchange Board of India’s (SEBI) newly established blockchain-based tokenization framework. The transaction utilizes Distributed Ledger Technology (DLT) to manage the bond lifecycle, aiming to enhance transparency and operational efficiency within the Indian corporate debt market. A critical component of this milestone is the integration of the tokenized securities with Central Bank Digital Currency (CBDC) for settlement, ensuring a seamless digital transaction flow. By adopting this technology, L&T is modernizing its treasury operations and setting a precedent for digital capital-market infrastructure in the region. This development is significant as it signals a shift toward regulatory-backed blockchain adoption in one of the world's largest emerging economies. The move highlights how institutional players are leveraging DLT to reduce friction in traditional finance, potentially paving the way for broader liquidity and participation in Indian corporate debt.
- L&T raised ₹500 crore via tokenized bonds with a 3-year maturity.
- Issuance follows SEBI’s new blockchain-based framework for corporate debt.
- Settlement was executed using India's Central Bank Digital Currency (CBDC) wallet.
- L&T is the first private sector entity in India to utilize this DLT infrastructure.
Larsen & Toubro is a USD 32 billion Indian multinational conglomerate specializing in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and various services. The company maintains a long-standing reputation for integrating advanced technology and AI into its diverse business operations across global markets.