REC to launch India's 1st tokenized corporate bonds next month
India is gearing up to launch its very first tokenized corporate bonds next month, with state-run REC leading the charge.
These bonds use blockchain technology to enable instant settlement of bond transactions, pretty much putting India alongside global players like Europe and Hong Kong.
The debut bonds will be valued under ₹5 billion ($57 million) and get their spotlight at a fintech event in Mumbai.
Investors use CBDC and DEMAT 2.0
A select group of investors will try out these digital bonds using two wallets: one for central bank digital currency (CBDC) and another called DEMAT 2.0 to track bond holdings on the blockchain.
There's a three-month lock-in, and you won't see these on regular trading platforms just yet.
If all goes well, a secondary market for these tokenized bonds could roll out by December, potentially making India's bond market almost instantly faster.