India Plans to Launch Tokenized Bonds Using CBDC

India is reportedly preparing to launch its first tokenized corporate bonds in September through a pilot that will use blockchain-based infrastructure and settlement via a central bank digital currency (CBDC). REC Limited, a state-controlled Indian power infrastructure finance company, plans to issue less than 5 billion Indian rupees, or roughly $57 million, in tokenized bonds, Reuters reported on Monday, citing three sources familiar with the plans.

The pilot is expected to be limited initially to a selected group of investors and could be formally unveiled during a major financial technology event in Mumbai in September. “India’s central bank digital currency will be used to buy the tokenized bonds,” Reuters reported, citing one of the sources.

Investors will use CBDC and digital securities wallets

Participants in the pilot will reportedly need two separate digital accounts. One will be a wholesale CBDC wallet provided by a bank, while the second will be a new electronic securities wallet designed to hold the tokenized bonds.

Indian securities depositories are developing the new wallet, known as DEMAT 2.0, which will use distributed ledger technology to record investors’ bond holdings. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are reportedly collaborating on the project.

Tokenized bonds could gain secondary market by December

The bonds are expected to carry an initial three-month lockup period. Indian exchanges are then expected to develop a secondary market for the tokenized securities by December, potentially allowing investors to trade the bonds after the initial restriction expires.

The pilot would represent a significant step in combining India’s wholesale digital rupee infrastructure with tokenized traditional financial assets. The initiative brings together India’s central bank and securities regulator as the country explores how blockchain infrastructure could be integrated into regulated capital markets.

Sources:

https://www.reuters.com/world/india-plans-first-tokenised-bond-issue-september-sources-say-2026-08-24/

https://cointelegraph.com/news/india-tokenized-bonds-digital-rupee