HDFC Bank and ICICI Bank were among the buyers of India’s inaugural tokenised bond issued by REC, signalling growing interest in blockchain-enabled debt settlement and a faster, more efficient securities market.
HDFC Bank and ICICI Bank were among the buyers of India’s first tokenised bond, issued by state-owned REC, in a small but closely watched deal that points to growing interest in blockchain-based settlement for debt markets. Bloomberg reported that the New Delhi-based lender raised 5 billion rupees, or about $52.9 million, from the issue, which carried a 7.30% coupon and matures in May 2028.
According to people familiar with the transaction, about 20 investors took part, including banks, mutual funds and corporates. Moneycontrol also reported that settlement used the Reserve Bank of India’s digital currency, underscoring how the pilot linked tokenised securities with central bank-backed infrastructure.
The issuance was framed as a test of whether distributed ledger technology can make bond trading and settlement quicker and more efficient. Financial Express said the sale was oversubscribed nearly eight times, while Outlook Business reported that pay-in, allotment and listing were completed on the same day, an unusually fast turnaround for India’s corporate bond market.
The move also comes as other companies begin to follow. Business Standard reported that Larsen & Toubro and IIFL Finance later raised money through tokenised bonds, while theBlock said India’s markets watchdog has since said three issuers raised 1,025 crore rupees under its Demat 2.0 pilot, suggesting the REC deal may have helped open the door to broader use of tokenised debt.
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