India plans tokenised corporate bond pilot

India is moving ahead with a pilot to issue tokenised corporate bonds next month, starting with a first issuance by state-owned power financier REC, using blockchain to achieve near-instant settlement. The plan envisions settlement in tandem with India’s central bank digital currency, the digital rupee, and requires investors to operate two compatible wallets, including a new DEMAT 2.0 electronic securities wallet to record bond holdings on a distributed ledger. The initiative is being developed by regulators including the RBI and SEBI as part of a broader modernization roadmap, with the pilot limited to a select group of investors and details on issuers and timelines not fully disclosed. If successful, tokenised bonds could improve liquidity, reduce settlement risk, and demonstrate CBDC’s utility in securities trading, potentially shaping future market practices and policy. Industry descriptions emphasize the convergence of traditional finance and blockchain technology as India expands its use of digital assets to strengthen financial infrastructure, though concrete dates and participants remain tentative and subject to regulatory approval.