L&T, IIFL Finance tap blockchain bonds as India's digital market grows

L&T and IIFL Finance have launched significant tokenised bond offerings, marking growing institutional confidence in India's nascent digital securities settlement framework. L&T raised Rs 500 crore through the tokenised bond route, while IIFL Finance mobilised Rs 25 crore, building on the momentum created by REC's pioneering entry into the space.

Tokenised bonds leverage blockchain technology to enable faster settlement, reduced paperwork, and enhanced transparency in the issuance and trading of debt securities. The shift represents a strategic embrace of fintech solutions by major Indian issuers seeking to modernise their capital-raising processes.

REC's earlier foray into tokenised bond issuance had demonstrated the viability of the mechanism within India's regulatory framework. The subsequent participation by L&T and IIFL Finance suggests growing comfort among both issuers and investors with the technology-enabled settlement infrastructure.

These developments reflect the wider push by Indian financial regulators and market participants to modernise securities markets and reduce transaction friction. The tokenised bond market remains in early stages, but the participation of major corporations indicates potential for broader adoption in coming months.