India is set to debut tokenised corporate bonds next month, marking the country’s entry into a market that already includes Europe and Hong Kong. The pilot will be led by state-owned power financier REC, which plans to issue bonds valued at less than 5 billion rupees (about $57 million).

Blockchain and digital‑currency integration

The bonds will be recorded on a blockchain or distributed‑ledger system, allowing ownership, issuance, trading and settlement to occur almost instantly. India’s markets regulator and the Reserve Bank of India are collaborating on the framework, and the central bank’s digital currency will be used to purchase the tokenised bonds.

Investor access and wallet requirements

Investors will need two digital accounts: a wholesale digital‑currency wallet provided by a bank and a new electronic securities wallet, known as DEMAT 2.0, being developed by Indian depositories. Both wallets must be compatible for any subsequent trades.

Pilot details and timeline

The offering will be presented at an annual financial‑technology event in Mumbai next month and will be limited to a select group of investors during the pilot stage. The bonds will carry an initial three‑month lock‑in period, with a secondary market expected to emerge by December. They will not be listed on traditional electronic book‑provider platforms.

Neither the Reserve Bank of India, the securities regulator nor REC responded to requests for comment.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.