India’s securities regulator SEBI launched a pilot for tokenized corporate bonds on digital ledgers, with three initial issuances totaling 1,025 crore rupees. REC Limited, L&T Limited and IIFL issued these bonds on September 7 and 9, for amounts of 500, 500 and 25 crore rupees respectively. The system uses atomic settlement that synchronizes bond transfer with payment in the RBI’s wholesale digital rupee, eliminating settlement risk without changing issuer credit risk. India’s depositories retain ownership records and manage private keys while maintaining the existing legal and economic structure of the bonds. Stage II plans to introduce secondary market trading and retail investor access.
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