India to Launch Its First Tokenised Corporate Bond in September as State Owned REC Tests Blockchain Settlement
Updated: Oct 7
India will issue its first tokenised corporate bond next month, according to Reuters sources, as the country tests blockchain based instant settlement through a small pilot deal that places it alongside Europe and Hong Kong among jurisdictions actively experimenting with tokenised debt issuance.
What happened
State owned power financier REC is planning to issue the notes, expected to be valued at under 5 billion rupees, roughly 57 million dollars, with the launch slated for announcement at a major fintech event in Mumbai in September, according to reporting published 24 August 2026. India's central bank digital currency will be used to settle purchases of the tokenised bonds, and the pilot stage offering will be restricted to a select group of investors rather than opened broadly.
Tokenised bonds record ownership, issuance, trading and settlement digitally on a blockchain or distributed ledger, in principle allowing transactions to complete almost instantly rather than over the multi day settlement cycles that still apply to most conventional bond trades.
What it means
The pilot is notable less for its size, which is modest, than for what it signals about where central bank digital currency infrastructure and tokenised securities are converging. Using a CBDC as the settlement leg for a tokenised bond removes one of the persistent obstacles that has slowed institutional tokenisation elsewhere: the absence of a trusted, regulated onchain cash equivalent.
The UK's own Digital Gilt Instrument pilot has faced a similar missing piece, according to recent reporting, with plans for a broader digital securities ecosystem still waiting on a comparable onchain cash solution. India moving first with a CBDC settled bond, even at small scale, gives UK policymakers and the Wholesale Digital Markets Champion taskforce a live case study to watch as they work toward their own goal of a live, end to end tokenised repo transaction by spring 2027.
What comes next
If the REC pilot settles cleanly, expect follow on issuance from other Indian state owned financiers and a renewed push from UK and European authorities to resolve the onchain cash question that has stalled comparable pilots domestically. For founders and platforms in the UK tokenisation space, the lesson is that regulatory sequencing, solving the settlement cash problem before scaling issuance, may matter more than headline issuance volume.
Key takeaways
REC, a state owned Indian power financier, plans to issue India's first tokenised corporate bond in September 2026, valued at under 5 billion rupees.
The bonds will settle using India's central bank digital currency, addressing the onchain cash gap that has slowed similar pilots elsewhere, including the UK's Digital Gilt Instrument work.
The pilot will be restricted to a select group of investors at launch.
The move places India alongside Europe and Hong Kong among jurisdictions actively piloting tokenised debt settlement, and offers a live reference point for the UK's own tokenised repo ambitions.
Sources:
Frequently asked questions
Who is issuing India's first tokenised corporate bond?
REC, a state owned Indian power financier, is planning to issue India's first tokenised corporate bond, with the launch slated for announcement at a major fintech event in Mumbai in September 2026, according to reporting published on 24 August 2026.
How large is REC's tokenised bond issue?
The notes are expected to be valued at under 5 billion rupees, roughly 57 million dollars. The pilot stage offering will be restricted to a select group of investors rather than opened broadly.
How will India's tokenised corporate bond be settled?
Purchases of the tokenised bonds will be settled using India's central bank digital currency. Using a CBDC as the settlement leg addresses the absence of a trusted, regulated onchain cash equivalent, which has slowed institutional tokenisation elsewhere.
What is a tokenised bond?
A tokenised bond records ownership, issuance, trading and settlement digitally on a blockchain or distributed ledger. In principle this allows transactions to complete almost instantly rather than over the multi day settlement cycles that apply to most conventional bond trades.
Why does India's CBDC settled bond pilot matter for the UK?
The UK's Digital Gilt Instrument pilot has faced a similar missing onchain cash solution. India's pilot gives UK policymakers and the Wholesale Digital Markets Champion taskforce a live case study as they work toward a live, end to end tokenised repo transaction by spring 2027.
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