
What tokenised bonds mean for India’s debt market
Tokenized bonds are emerging as a transformative force in India's debt market by leveraging blockchain technology to enhance transparency, liquidity, and settlement efficiency. By digitizing bond issuance, the process reduces reliance on traditional intermediaries, thereby lowering transaction costs and shortening settlement cycles from T+2 to near-instantaneous execution. This shift allows for fractional ownership, enabling retail investors to access high-yield debt instruments that were previously restricted to institutional players. The integration of smart contracts automates interest payments and compliance, significantly reducing the administrative burden for issuers. As the Reserve Bank of India and SEBI explore digital infrastructure, the adoption of tokenization could broaden the investor base and deepen the domestic corporate bond market. This evolution is critical for India's financial ecosystem, as it aligns local debt markets with global trends in decentralized finance and digital asset integration. Ultimately, the transition toward tokenized debt represents a modernization of capital markets that promises to improve market accessibility and operational resilience for all participants.
