India is planning to issue its first-ever tokenized bond in September, with a size of over $57 million.

BlockBeats News, August 25th. According to Reuters, India plans to issue its first tokenized bond in September, to be issued by state-owned power financing company REC, with an issuance size expected to be below 5 billion rupees (approximately $57 million). The Indian market regulator and central bank are jointly promoting the related pilot project, and the bond issuance and settlement will be conducted using blockchain technology.

Sources said the product is expected to be launched during the annual fintech conference in Mumbai in September, initially targeting only a few investors. Investors will participate through wholesale central bank digital currency (CBDC) wallets and electronic security wallets. Indian custodian institutions are developing an electronic wallet called DEMT 2.0 to record bond holdings through distributed ledger technology.

The bond's initial tenure is three months, and subsequent trading is limited to participants holding compatible CBDC and security wallets simultaneously. A secondary market for tokenized bonds is expected to form by December, and trading will not occur on traditional electronic trading platforms.