India's State-Run REC Pursues First Tokenized Bond Sale of Up to $53 Million
Summary
- India's state-run power finance company REC is pursuing a blockchain-based tokenized bond sale of as much as 5 billion rupees.
- The bond matures in May 2028 and can be purchased only through the Reserve Bank of India's CBDC.
- Issuance of tokenized bonds is increasing in India and across Asia, with the global tokenized asset market now worth about $39 billion.
Forecast Trend Report by Period
India's state-run power finance company REC is pursuing a blockchain-based tokenized bond sale, which would be the first of its kind in the country.
REC is soliciting investor bids for tokenized bonds worth as much as 5 billion rupees, or about $53 million, Bloomberg reported on September 4. The notes mature in May 2028, and investors can buy them only using the Reserve Bank of India's central bank digital currency, or CBDC.
Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India, said in May that tokenization would speed up settlement, improve bond-market liquidity and enhance transparency.
The planned sale is in line with a broader push by Indian authorities to develop the country's corporate bond market. India's corporate bond market is equal to about 17% of gross domestic product, far smaller than those of major economies such as South Korea and Malaysia.
Tokenized bond issuance is increasing across Asia. The Hong Kong Mortgage Corp. issued HK$8.5 billion of digital bonds in June, marking one of the world's largest such deals. The global market for tokenized assets now stands at about $39 billion.
Doohyun Hwang
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