India is set to launch its first blockchain-based tokenised corporate bond issue, leveraging the digital currency from the Reserve Bank of India to enhance transparency and efficiency in bond settlement, marking a significant milestone in financial innovation.
India is preparing to launch its first tokenised corporate bond sale next week, with state-run REC expected to raise about ₹500 crore through a debt issue that matures in one year and eight months, bankers said. The transaction would be the country’s first bond offering to use blockchain-based infrastructure for issuance and instant settlement, putting it alongside markets such as Hong Kong and parts of Europe that have experimented with similar systems.
According to bankers involved in the deal, the base size of the issue is ₹100 crore, with REC holding a greenshoe option to keep an additional ₹400 crore if demand is strong. The bidding is scheduled for Monday, and only investors with active securities and central bank digital currency wallets will be allowed to take part.
The bonds will be bought using the Reserve Bank of India’s digital currency, a feature that has drawn attention because it links tokenisation with the central bank’s own digital money. Market reports have described the sale as a pilot intended to test whether blockchain can make bond settlement faster, more transparent and potentially more efficient for future issuers and investors.
The move also fits into a wider regulatory push. Reuters reported last week that India’s markets regulator and the central bank were working together on the technology, with a pilot issue planned for early September. Separate reports have said the Securities and Exchange Board of India is preparing a new framework to hold tokenised assets, underscoring that the REC transaction may be only the first step in a broader effort to bring more fixed-income market activity on-chain.
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