India is gearing up to issue its inaugural tokenised corporate bond this September. The pilot, worth less than ₹500 crore, will test blockchain‑enabled instant settlement and the use of the RBI’s digital currency.

  • REC to issue India’s first tokenised bond worth under ₹500 crore
  • Transactions recorded on blockchain for near‑instant settlement
  • CBDC and new DEMAT 2.0 wallet required for investors

Pilot Issue Overview

State‑owned power financier REC plans to launch a pilot tokenised corporate bond valued at just under ₹500 crore (≈ $57 million). The issuance will be limited to a select group of investors and is slated to be unveiled at a major fintech conference in Mumbai next month.

What Are Tokenised Bonds?

Tokenised bonds are securities whose ownership, issuance, trading and settlement are recorded digitally on a blockchain or distributed ledger. Compared with traditional processes, this technology can complete transactions almost instantly.

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How The Mechanism Works

Investors will need two digital accounts: a wholesale digital‑currency wallet provided by a bank and a new electronic securities wallet (referred to as DEMAT 2.0) that holds the tokenised bonds. India’s central bank digital currency (CBDC) will be used to purchase the bonds.

Three‑Month Lock‑In Period

The bonds will carry an initial lock‑in of three months. Stock exchanges are expected to develop a secondary market by December, allowing trading after the lock‑in expires.

Why This Matters

BozokMedia analysis shows that India's move places it alongside European and Hong Kong markets, signaling a strategic push to modernise the country's capital markets and attract tech‑savvy investors.

"The tokenised bond pilot is a watershed moment for India’s bond market, marrying blockchain efficiency with central bank digital currency," said a senior financial analyst.
Did You Know?: Earlier proposals for blockchain‑based bond issuance in India surfaced in 2022, but regulatory clearance delayed implementation.

Frequently Asked Questions

Q1: What digital wallets are required to purchase the tokenised bond?
A: Investors need a bank‑issued digital‑currency wallet and the new DEMAT 2.0 securities wallet.

Q2: Will the bond be tradable on conventional brokerage platforms?
A: No, it will trade on a blockchain‑based secondary market rather than traditional electronic book‑provider platforms.