India Set to Issue First Tokenized Corporate Bonds in September as REC Pilot Falls Short of $57 Million

According to Reuters, India plans to launch its first tokenized corporate bond in September, issued by state-owned power financing company REC, with a total value of less than 5 billion Indian rupees (approximately $57 million). The pilot will utilize blockchain or a distributed ledger to record the issuance, holding, trading, and settlement of the bonds, enabling near-instantaneous trade settlement. According to people familiar with the matter, the Indian central bank and the securities market regulator are jointly advancing the relevant framework; investors must hold both a wholesale central bank digital currency (CBDC) wallet provided by banks and the new electronic securities wallet “DEMAT 2.0” to participate. The bond will feature an initial three-month lock-up period, with the pilot open to a select group of investors. Exchanges are expected to establish a secondary market for the bonds by December.