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India Set to Launch First Tokenised Corporate Bonds With Digital Rupee

India Set to Launch First Tokenised Corporate Bonds With Digital Rupee

REC is expected to issue the bonds through an RBI and SEBI-backed experiment using blockchain-based infrastructure.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 25 August 2026 15:21 IST

India Set to Launch First Tokenised Corporate Bonds With Digital Rupee

Photo Credit: Unsplash/Ewan Kennedy

The pilot will connect digital rupee settlement with blockchain-based securities infrastructure

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Highlights

REC’s bonds are expected to have a three-month lock-in period
A secondary market for the bonds could be created by December
DEMAT 2.0 will record ownership using distributed ledger technology

India's first tokenised corporate bonds are expected to launch next month in the form of an issue from REC worth less than Rs. 5 billion, using the digital rupee for settlement through blockchain technology. As per a report by Reuters, the state-backed power financing company REC will issue these bonds under an experiment being conducted jointly with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The proposed bond issuance will help determine whether distributed ledger technology could reduce the time taken for issuance and settlement of corporate bonds.

Pilot To Use Separate Wallets For Digital Currency And Tokenised Securities

The Report further says that ownership and transaction data will be kept in a digital format, and settlement can happen almost instantly after the necessary assets change hands among the participants. A source who was familiar with the plans said in an interview with Reuters that the product would be launched at the annual fintech event in Mumbai. Initially, only a select few investors would have access to the product.

The Reuters sources revealed that the participants of the test run would require two digital accounts. The first account is for the wholesale central bank digital currency wallet provided by the bank, and the other one is for the tokenised securities. The securities wallet of India is being developed by depositories under a system called DEMAT 2.0, where bonds that the investors own will be recorded using distributed ledger technology. Any transactions after that can only be conducted through investors who have compatible securities and wholesale CBDC wallets.

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The use of the RBI's digital rupee as the cash element of the deal will allow both the cash and the securities to be transferred using the interconnected digital infrastructure. This arrangement is aimed at testing out the settlement process without using the bonds from the traditional e-book service provider system.

As per the new arrangement, the bonds would come with an initial lock-in period of three months. The exchanges would also be looking to create a secondary market for these tokenised bonds until December, one of the sources said. Participants who own the necessary wallets can exchange the securities on the secondary market once the lock-up period expires. The platform will maintain the history of ownership of the bond on the distributed ledger in case of security transfer between authorised investors.

Earlier in October 2025, Union Minister Piyush Goyal announced that the government is looking to introduce a digital currency backed by the RBI, while adding that the government does not support private cryptocurrencies that lack asset backing. In contrast to conventional banking systems, the RBI-guaranteed digital currency is meant to streamline transactions, enable faster and traceable payments, and reduce paper consumption.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto in India, Tokenisation, RBI Cryptocurrency

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More