India Takes Leap into Tokenized Bonds with Blockchain Pilot

India plans to issue its first tokenized corporate bond in September 2026, marking a significant experiment in bringing blockchain technology to traditional debt markets. The Securities and Exchange Board of India (SEBI) is overseeing the pilot project, which aims to test faster settlements, automated coupon payments, and integration with the Reserve Bank of India's wholesale digital currency, the e-rupee.

The initiative has been in the works since May 2026, when SEBI Chairman Tuhin Kanta Pandey first outlined the tokenization plan at the CareEdge Debt Market Summit. The pilot project will run for six to nine months, allowing researchers to stress-test smart contract automation under real market conditions.

SEBI is building on existing infrastructure by layering distributed ledger technology (DLT) on top of India's depository systems. Both NSDL and CDSL have experience running DLT systems, which will be used to monitor secured debentures. The ambitious part of the project involves integrating the e-rupee framework with traditional securities transfer.

India's corporate bond market has grown significantly in recent years, reaching ₹60 trillion (approximately $700 billion) in outstanding volume. The integration of tokenized bonds and the e-rupee could lead to faster settlements and reduced counterparty risk.