India is preparing to launch its first tokenized bond in September, according to a Reuters report cited by BlockBeats. The bond is set to be issued by state-owned power-sector financier REC, with the deal expected to come in below 5 billion rupees, or about $57 million. India’s market regulator and central bank are jointly backing the pilot, and both issuance and settlement are expected to run on blockchain rails. People familiar with the matter said the product is likely to be introduced during an annual fintech conference in Mumbai in September, with access initially limited to a small group of investors. Participants will use wholesale central bank digital currency wallets alongside electronic securities wallets. India’s depository institutions are also developing a wallet called DEMT 2.0 to record bond ownership on a distributed ledger. The bond will carry an initial maturity of three months, and secondary trading is expected by December. Those trades will be limited to participants holding compatible CBDC and securities wallets, and the instrument is not expected to trade on traditional electronic platforms.
India plans to issue its first tokenized bond in September, according to a Reuters report cited by BlockBeats. The bond will be issued by state-owned power finance company REC, and the offering size is expected to be below 5 billion rupees, or about $57 million.
India’s market regulator and central bank are jointly pushing the pilot. The bond’s issuance and settlement will use blockchain technology.
People familiar with the matter said the product is expected to be introduced during an annual fintech conference in Mumbai in September. At the start, it will be offered only to a limited group of investors.
Investors will participate through wholesale central bank digital currency, or CBDC, wallets and electronic securities wallets. India’s depository institutions are developing an electronic wallet called DEMT 2.0, which will be used to record bond holdings through distributed ledger technology.
The bond will have an initial tenor of three months. Secondary trading will be limited to participants that hold both compatible CBDC wallets and securities wallets. A secondary market for the tokenized bond is expected to take shape by December, and the instrument will not trade on traditional electronic trading platforms.
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