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India to Pilot Tokenised REC Bonds in September

The trial will test whether on-chain simultaneous transfer of cash with securities using the RBI’s wholesale e-rupee can speed settlement and cut counterparty risk.

Overview

  • The pilot is planned for September 2026 and will involve REC issuing tokenised corporate bonds worth under 5 billion rupees to a select group of investors.
  • SEBI and the Reserve Bank of India are working together to test on-chain delivery‑versus‑payment so cash and securities move at the same time on a distributed ledger.
  • Investors must hold two digital accounts to take part: a bank-issued wholesale CBDC wallet for the e-rupee and a new DEMAT 2.0 electronic securities wallet that records token holdings on a DLT chain.
  • The bonds will carry an initial three-month lock-in and exchanges aim to open a secondary market by December while the pilot runs for about six to nine months.
  • If successful, the experiment could cut settlement time, free up collateral and reduce reconciliation work in India’s ₹60 trillion-plus corporate bond market while testing smart contracts and legal integrations on existing depository systems.