Woofun AI reports that India is preparing to launch its first tokenized corporate bonds in September, a strategic initiative driven by REC Limited, the state-controlled power infrastructure finance company. This pilot program, which utilizes blockchain-based transactions settled through a central bank digital currency (CBDC), represents a significant convergence of traditional finance and digital asset infrastructure. The collaborative effort involves the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), as part of the initiative.

The issuance is capped at less than 5 billion Indian rupees, equivalent to $57 million, with the pilot initially restricted to a select group of investors. The project is scheduled to be unveiled at an annual financial technology event in Mumbai in September. Following this initial phase, exchanges are expected to develop a secondary market for the tokenized bonds by December, extending the lifecycle of the assets beyond their primary issuance.

Woofun AI data shows that structurally, the pilot relies on a wholesale CBDC framework where participants must maintain two distinct digital accounts: a wholesale CBDC wallet provided by a bank and a new electronic securities wallet. Indian securities depositories are developing this new wallet, termed DEMAT 2.0, which will record bond holdings using distributed ledger technology. The bonds will feature an initial three-month lockup period, after which they may be traded on the emerging secondary market.

Investors are required to utilize both a wholesale CBDC wallet and the electronic securities wallet to participate in the transaction process. Despite the detailed planning outlined by industry sources, no responses were received from the RBI, SEBI, or REC Limited when contacted for comment. This lack of official confirmation underscores the preliminary nature of the announcement, though the technical specifications suggest a robust framework for future digital asset integration.