Zee Business: Tokenisation to Boost India's Bond Market

At the Bond Tokenization Summit 2026, industry leaders gathered to discuss the transformative potential of tokenisation in unlocking greater liquidity in India's bond market. Jubin Goyal, CEO & Director of eXchange1, shared his insights on how global practices can help strengthen India's bond market. The event, covered by Zee Business, highlighted the urgent need for innovation in a market that remains largely illiquid, with limited retail participation. Tokenisation, which involves representing bonds as digital tokens on a blockchain, could democratise access and enable fractional ownership, thereby deepening the market. Analysts say that India's bond market, despite being one of the largest in Asia, suffers from low secondary market activity, with most trading concentrated in a few securities. The Reserve Bank of India has been advocating for reforms to enhance liquidity, and tokenisation is seen as a promising avenue. Goyal emphasised that global practices, such as those in Europe and the US, where tokenised bonds have been issued, can provide a blueprint for India. However, challenges such as regulatory clarity, technological infrastructure, and investor education remain. The summit served as a platform for stakeholders to collaborate and chart a roadmap for adoption.

The potential benefits of tokenisation are substantial. By enabling fractional ownership, tokenisation can lower entry barriers for retail investors, allowing them to invest in high-value bonds with smaller amounts. This could significantly broaden the investor base and increase demand. Moreover, blockchain-based tokens can facilitate faster settlement and reduce counterparty risks, making the market more efficient. According to data presented at the summit, the global tokenised bond market is projected to grow exponentially, with estimates suggesting it could reach $16 trillion by 2030. In India, the corporate bond market is relatively small compared to equity markets, with outstanding issuances of around ₹40 lakh crore. Tokenisation could help unlock this potential by attracting new investors and improving price discovery. The table below summarises key statistics shared during the summit:

Experts at the summit also discussed the regulatory landscape. The Securities and Exchange Board of India (SEBI) has been exploring frameworks for tokenised securities, and the government's push for digital infrastructure under the Digital India initiative could accelerate adoption. A blockquote from the summit underscored the importance of collaboration:

Tokenisation is not just about technology; it's about reimagining how we access and trade bonds. By learning from global practices, India can leapfrog traditional barriers and create a more inclusive and liquid bond market.

Analysts say that for tokenisation to succeed, standardisation is key. Without common protocols, interoperability issues could hinder growth. Additionally, legal recognition of tokenised assets and clear tax treatment are essential. The summit concluded with a call to action for policymakers, regulators, and market participants to work together. As India aims to become a $5 trillion economy, a robust bond market is critical for financing infrastructure and corporate growth. Tokenisation could be the catalyst that transforms the market, making it more accessible, efficient, and resilient. For more insights on market trends and financial innovations, visit MarketToMoney.co.in.