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[BUSINESS] · India · 7 sources

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India to launch first tokenized corporate bonds using digital rupee

India is preparing to launch its first pilot for tokenized corporate bonds in September. The initiative, expected to be led by the state-owned power financier REC, aims to issue bonds valued at less than 5 billion rupees (approximately $57 million).

The pilot program is a joint effort between the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). It will utilize blockchain-based infrastructure and the digital rupee (CBDC) to handle everything from issuance to settlement, potentially enabling real-time transactions.

Participants in the pilot will be restricted to a select group of investors and will require two types of digital accounts: a wholesale CBDC wallet provided by a bank and a specialized securities wallet known as DEMAT 2.0. The bonds will include a three-month mandatory holding period, with plans to establish a secondary trading market by December.

Entities

India · Mumbai · REC · Reserve Bank of India · Securities and Exchange Board of India

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