27th August 2026
By Shubhii Verma
India is preparing to launch its first tokenised corporate bond issue next month, marking a significant step in the country’s efforts to integrate blockchain technology into traditional financial markets, according to three sources familiar with the matter.
India’s First Tokenised Corporate Bond Pilot: Key Details
The pilot issuance will be undertaken by state-owned power financier REC Ltd and is expected to involve bonds worth less than ₹5 billion ($57 million). The initiative is being developed with the involvement of India’s central bank and markets regulator as authorities explore how blockchain and distributed ledger technology can improve the efficiency of securities markets.
Tokenised bonds are digital representations of traditional securities whose issuance, ownership, trading and settlement are recorded on a blockchain or distributed ledger. Unlike conventional bond transactions, which can involve multiple intermediaries and settlement periods, tokenisation could allow transactions to be completed almost instantly.
The pilot is expected to be unveiled at an annual financial technology event in Mumbai in September. Initially, participation will be limited to a select group of investors, although the identities of those investors have not been disclosed.
A key feature of the proposed system is the use of India’s central bank digital currency (CBDC) to purchase the tokenised bonds. Investors participating in the pilot will reportedly need two digital wallets: a wholesale CBDC wallet provided by a bank and a separate electronic securities wallet.
Role of CBDC and DEMAT 2.0 in Tokenised Bond Settlement
Indian securities depositories are developing a new digital wallet, referred to as DEMAT 2.0, which will record bond ownership using distributed ledger technology. Future transactions would be restricted to participants holding compatible CBDC and securities wallets, creating a fully digital settlement ecosystem.
The tokenised bonds are expected to have an initial three-month lock-in period. Stock exchanges are also expected to develop a secondary market for these securities by December, potentially allowing investors to trade the assets after the lock-in period.
The securities will not initially be traded through conventional electronic book provider platforms.
India Joins Global Tokenised Asset Adoption Trend
If successfully implemented, the initiative could position India alongside financial centres such as Europe and Hong Kong, where authorities and financial institutions have already experimented with blockchain-based securities.
The pilot also comes as Indian regulators increasingly explore tokenisation as a way to modernise financial infrastructure, reduce settlement risks and potentially lower transaction costs. A successful trial could pave the way for larger tokenised bond offerings and broader adoption of blockchain-based financial assets in India.
