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India to launch tokenised corporate bond issue next month
The pilot offering from state-owned lender REC is expected to be under 5 billion rupees, with instant settlement tested via blockchain and CBDC-linked wallets.
India plans to launch tokenised corporate bonds next month, Reuters reported, as authorities test blockchain-based issuance and near-instant settlement for bond trades.
The offering will be the first tokenised notes from state-owned power financier REC, Reuters said, with the deal size expected to be less than 5 billion rupees, about $57 million.
Reuters added that India’s markets regulator and central bank are working together on the framework, and the central bank’s digital currency is expected to be used for purchases.
To access the bonds, investors will need two digital accounts, a wholesale digital currency wallet and a new electronic securities wallet, with depositories developing an e-wallet called DEMAT 2.0 to record bond holdings on distributed ledger technology. The bonds are expected to have a three-month lock-in, and a secondary market is expected to develop by December, Reuters said.