India Prepares Tokenized Bond Pilot Using CBDC

India is preparing to test tokenized corporate bonds in September as part of a pilot project. The REC Limited, a state-controlled Indian power infrastructure finance company, will issue less than 5 billion Indian rupees ($57 million) in tokenized bonds.

The pilot will use blockchain-based transactions settled using the central bank digital currency (CBDC). Investors will need two digital accounts to participate: a wholesale CBDC wallet provided by a bank and a new electronic securities wallet. The pilot is expected to be unveiled at an annual financial technology event in Mumbai in September.