New Delhi, Oct. 27 -- India's bond market is entering a new phase with the introduction of tokenized bonds, a digital system designed to make bond issuance, trading and settlement faster. Unlike traditional bonds, which rely on multiple intermediaries to complete transactions, tokenized bonds use blockchain-based technology to record ownership and settle payments.

The new system has already seen its first issuances, with REC raising Rs.500 crore, Larsen & Toubro (L&T) issuing another Rs.500 crore and IIFL raising Rs.25 crore. Together, these three issuances amount to Rs.1,025 crore, according to the July-September 2026 edition of PPFAS's quarterly magazine, The Tortoise Lens.

In the report, Mansi Kariya, Associate Vice President and Fun...