According to Reuters, India plans to launch its first tokenized corporate bond in September, issued by the state-owned power financing company REC, with a size of less than INR 5 billion (approximately $57 million). The pilot aims to use blockchain or distributed ledger technology to record bond issuance, ownership, trading, and settlement, enabling near-instantaneous transaction settlement. According to sources familiar with the matter, India’s central bank and securities regulator are jointly developing the regulatory framework; investors must hold both a wholesale central bank digital currency (CBDC) wallet provided by a bank and a new electronic securities wallet, “DEMAT 2.0,” to participate. The bond will have an initial lock-up period of three months and will be offered to a limited number of investors in a pilot phase, with exchanges expected to establish a secondary market by December.
India to Launch First Tokenized Corporate Bonds in September
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Summary
India to Launch First Token Offering in September as State-Owned REC Prepares to Issue Tokenized Corporate Bonds Worth Less Than 50 Billion Rupees. The Pilot Will Use Blockchain for Issuance, Trading, and Settlement with Near-Instant Processing. The Reserve Bank of India and Securities Regulator Are Developing the Framework. Investors Will Need a Wholesale CBDC Wallet and DEMAT 2.0 to Participate. A Three-Month Lock-Up Period Applies, with a Secondary Market Expected by December. Federal Reserve News Remains Unrelated, but Global Attention Is Growing.
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