India Launches First Tokenized Corporate Bond Issue in September 2026

The Reserve Bank of India (RBI) is set to launch its first tokenized corporate bond issue in September 2026, with state-owned REC expected to raise less than ₹500 crore. The pilot combines DEMAT 2.0, a new securities wallet, with RBI's wholesale central bank digital currency, e₹-W.

DEMAT 2.0 records investors' tokenized bond holdings on distributed-ledger infrastructure, while e₹-W settles payment in digital rupees. Selected investors need both DEMAT 2.0 and e₹-W wallets during the September pilot.

The RBI's wholesale CBDC bond settlement component supplies the cash side of the transaction in central-bank money, reducing transaction costs by limiting guarantees or collateral used to manage settlement risk.

However, the model remains distinct from settlement using USDT or another privately issued stablecoin. The tokenized bond remains regulated corporate debt carrying REC's repayment obligations, interest terms, maturity, and credit risk, while the payment asset is a direct RBI liability.