L&T raises ₹500 crore via debt fundraising, becomes first private sector corporate to issue tokenised bonds
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Larsen & Toubro (L&T) has raised ₹500 crore through a three-year tokenised bond issue, becoming the first private sector corporate in India to tap the blockchain-based debt market under Sebi’s newly introduced tokenisation framework. On Monday, state-owned power financier REC raised ₹500 crore through tokenised bonds, becoming the first company in the country to do so.
The transaction marks a significant step in the adoption of distributed ledger technology (DLT) in India’s corporate bond market, with the funds settled through a central bank digital currency (CBDC) wallet. It is also an early test of whether blockchain-based securities infrastructure can operate within India’s regulated debt market.
“L&T has become the first private sector corporate in India to issue tokenised bonds, marking a significant milestone in the digital transformation of the corporate bond market,” the company said.
The integration of tokenised securities with CBDC-based settlement infrastructure is aimed at enabling more seamless, secure and efficient digital capital-market transactions. The framework is also expected to facilitate wider participation and potentially improve liquidity in the market.
“Sebi’s pioneering initiative enables the tokenisation of corporate bonds using Distributed Ledger Technology (DLT), marking a significant step towards the digital transformation of India’s corporate bond market,” the company said.
The transaction marks another step in L&T’s adoption of technology-led solutions in its capital-raising and treasury operations. The company said the use of DLT is expected to streamline the recording and management of bond transactions while supporting the evolution of India’s corporate debt market.
“The use of DLT is expected to enable a more streamlined and transparent framework for recording and managing bond transactions, while supporting the evolution of India’s corporate debt market,” it added.
Meanwhile, shares of L&T closed 0.88% lower at ₹3,925 on the BSE, giving the company a market capitalisation of ₹5.4 lakh crore.
What is a tokenised bond?
A tokenised bond is essentially a regular bond that is represented digitally using blockchain or other distributed ledger technology (DLT). The Bank for International Settlements (BIS) describes it as a debt security whose ownership or economic rights are recorded as digital tokens on a programmable ledger.
Importantly, tokenisation does not turn a bond into a cryptocurrency. It remains a conventional debt instrument, with an issuer, interest payments, a maturity date and legal obligations. The key difference is that the bond is recorded and transferred digitally, potentially making transactions faster and more efficient.
In India, the first pilot issuance of tokenised corporate bonds was completed in September 2026 in coordination with the Reserve Bank of India (RBI), under the Securities and Exchange Board of India’s (Sebi) Regulatory Sandbox Framework. The move brings blockchain-based technology into the regulated corporate debt market and could pave the way for faster settlement, reduced reconciliation requirements and greater programmability in bond transactions.
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