India plans first tokenized bonds using wholesale CBDC: Report
India plans to test tokenized corporate bonds in a September pilot, with state-controlled REC issuing the debt and select investors using wholesale CBDC payments.
India is preparing to launch its first tokenized corporate bond pilot in September, according to a report from Cointelegraph. The initiative will see state-controlled energy financing company REC Limited issue tokenized debt instruments, with select institutional investors using the country's wholesale central bank digital currency — the digital rupee — to settle payments.
The move represents a significant step in India's broader digital currency and financial infrastructure development. The Reserve Bank of India has been piloting its wholesale CBDC since late 2022, primarily targeting interbank transactions. Expanding its application to tokenized bond settlements would mark a new phase for the program, bridging traditional fixed-income markets with emerging blockchain-based financial infrastructure.
The pilot carries notable implications for India's capital markets and the wider tokenization landscape in Asia. By integrating wholesale CBDC payments with tokenized securities, the framework could reduce settlement times, lower counterparty risk, and improve transparency in bond transactions. Several major economies, including the European Union and Hong Kong, have already conducted similar experiments, and India's entry positions it among a growing group of nations exploring programmable financial instruments at an institutional level.
Market participants will be watching the September pilot closely to assess the technical architecture employed, the number and profile of participating investors, and whether regulatory frameworks will be adapted to support broader tokenized securities issuance in India going forward.
Source: Cointelegraph
