India plans to issue its first tokenized bond in September, with a value potentially exceeding $57 million.

According to Reuters, India plans to issue its first tokenized bond in September, offered by state-owned power finance firm REC, with an expected size of less than 5 billion rupees (around $57 million). India’s market regulator and central bank are jointly advancing the related pilot, with blockchain technology to be used for the bond’s issuance and settlement. Sources said the product is set to launch during Mumbai’s annual fintech conference in September, initially open only to a small group of investors. Investors will participate via wholesale central bank digital currency (CBDC) wallets and electronic securities wallets. India’s depository institutions are developing an e-wallet named DEMT 2.0, which will use distributed ledgers to track bond holdings. The bond has an initial three-month term; subsequent trading will be restricted to participants holding both CBDC-compatible and securities wallets. A secondary market for the tokenized bond is projected to form by December, and it will not be traded on traditional electronic trading platforms.