State-owned REC will issue tokenised bonds worth up to 5 billion rupees using blockchain for instant settlement in a regulatory-backed test.
India will launch its first tokenised corporate bond offering next month, led by state-owned power financier REC. The pilot aims to test blockchain technology for instant settlement of bond transactions, aligning India with markets like Europe and Hong Kong in adopting distributed ledger systems for securities issuance and trading.
The offering will be valued at less than 5 billion rupees ($57 million) and will use India’s central bank digital currency for purchases. Regulators, including the central bank and markets authority, are collaborating on the initiative, though details on investors, timeline, and framework remain undisclosed.
The bonds will be available to a select group of investors during the pilot phase. The initiative is expected to be announced at a fintech event in Mumbai next month, marking a step toward modernizing India’s bond market infrastructure.