India To Launch First Tokenised Corporate Bond Issue In September
Add Preferred News Source
India plans to launch its first tokenised corporate bond issue in September through state-owned REC, with bonds worth close to ₹500 crore to be settled using blockchain technology and purchased through the central bank digital currency.
India is set to test tokenised corporate bonds next month, marking the country's first such issuance as regulators explore blockchain technology for bond issuance and settlement, Reuters reported, citing three people familiar with the matter.
State-owned power financier REC Limited is expected to issue the tokenised bonds, with the offering likely to be worth close to ₹500 crore ($57 million), according to the sources. The issue is expected to be unveiled at an annual financial technology event in Mumbai next month.
The initiative is being developed jointly by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
What Are Tokenised Corporate Bonds?
Tokenised bonds are securities whose ownership, issuance, trading and settlement are recorded digitally on a blockchain or distributed ledger. The technology can allow transactions to be completed almost instantly compared with conventional settlement processes.
The pilot will use India's central bank digital currency (CBDC) for purchasing the tokenised bonds, according to one of the sources. The offering is expected to initially be available only to a select group of investors.
How Will The New Bond Framework Work?
Investors participating in the pilot will need access to two digital accounts: a wholesale digital currency wallet provided by a bank and a new electronic securities wallet, according to the sources.
Indian depositories are developing an electronic wallet called DEMAT 2.0, which will record bond holdings on a distributed ledger technology chain. Subsequent trades will be restricted to participants holding compatible CBDC and securities wallets.
The tokenised bonds are expected to carry an initial three-month lock-in. Stock exchanges are also expected to develop a secondary market for these securities by December, one source said.
The bonds will not be traded through the conventional electronic book provider platform, according to the sources.
What Happens Next?
The proposed September issue is expected to be followed by the development of a secondary market for tokenised bonds by December. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) are involved in developing the digital securities infrastructure.
The pilot will therefore cover not only the issuance of a tokenised security but also the infrastructure needed for holding and settling it digitally. REC's tokenised bond pilot marks a technology-led initiative in India's capital markets.
On 24 August 2026, REC shares closed at ₹327.9 on the National Stock Exchange.
Also Read - PVR INOX Shares In Focus As Company Plans First-Ever Buyback Proposal
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
Right Tools, Rich Insights
