Key facts
- State-owned REC Ltd. plans to issue tokenized bonds worth up to 5 billion rupees.
- The bonds will mature in May 2028.
- This is India's first debt issuance utilizing blockchain technology for issuance, trading, and settlement.
India's REC to Issue First Tokenized Bond Worth Up to $53 Million
IN SHORT
State-owned REC Ltd. is set to issue India's first tokenized corporate bonds, aiming to raise up to 5 billion rupees ($53 million). The issuance will utilize blockchain technology for issuance, trading, and settlement, with purchases requiring the Reserve Bank of India's digital currency.
Key Numbers
5 billion rupeesREC's tokenized bond issuance target
$53 millionApproximate USD equivalent of issuance
May 2028Bond maturity date
1 billion rupeesBase issue size
4 billion rupeesGreenshoe option size
Who's Involved
REC Ltd.
State-owned power financier issuing tokenized bonds
Reserve Bank of India
Central bank whose digital currency will be used for purchases
↳ Why This Matters
This issuance represents a significant step in India's adoption of blockchain technology in its debt markets, potentially enhancing liquidity and streamlining settlement processes. It aligns with the Reserve Bank of India's efforts to push the adoption of this technology.