INDIA'S FIRST TOKENIZED BOND LAUNCHED BY REC

REC Ltd., a major lender to India's power sector, is pioneering blockchain-based bond issuance in the country. The tokenized bonds convert traditional debt instruments into digital tokens on a blockchain network, enabling faster settlement and broader market access. The bond offering represents a significant step toward digitizing India's financial infrastructure. Tokenization reduces settlement times from days to minutes and lowers transaction costs by eliminating intermediaries. The initiative aligns with India's broader push to modernize its capital markets and adopt emerging technologies. The Reserve Bank of India and market regulators have been exploring blockchain applications for securities trading and settlement. REC's move could pave the way for other state-owned enterprises and corporations to issue tokenized debt instruments, potentially transforming how bonds are traded in India's $600 billion debt market.