Larsen & Toubro (L&T) has become India’s first private sector corporate to issue tokenised bonds, raising Rs 500 crore through a three year bond under the Securities and Exchange Board of India’s (SEBI) blockchain based tokenisation framework.
By leveraging Distributed Ledger Technology (DLT) infrastructure across the bond’s entire lifecycle, this landmark issuance marks a major step forward in the digitalisation of India’s corporate debt market.
Adopting DLT could make the corporate debt market more transparent and efficient by simplifying transactions from issuance to settlement. It could also make the market more accessible and secure for issuers and investors.
The funds raised through the issuance were settled using a Central Bank Digital Currency (CBDC) wallet, bringing together tokenised securities and digital-currency-based settlement infrastructure. L&T said the combination represents a move towards more seamless, secure and efficient digital capital-market transactions.
The company said the transaction is part of its broader adoption of technology-led solutions in capital raising and treasury operations. L&T expects the use of DLT to make bond transactions more transparent and efficient while supporting the continued development of India’s corporate bond market.
SEBI’s framework allows eligible corporate bonds to be tokenised using DLT, creating a digital representation of securities and enabling transactions through blockchain-based infrastructure. The framework is aimed at improving transparency and efficiency while facilitating greater digital participation in the corporate bond ecosystem.
The Rs 500 crore issuance also highlights the potential of tokenisation to support wider investor participation and potentially improve liquidity in the corporate debt market.
In FY26, L&T reported a standalone total income of Rs 1.61 lakh crore, up 8.68% year-on-year. Outstanding non convertible debentures totaled Rs 9,800 crore as of March 31, 2026, alongside Rs 14,600 crore raised through listed commercial papers.
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L&T’s tokenised bond issuance is another step towards bringing blockchain technology into India’s corporate debt market. Using distributed ledger technology (DLT) could make bond transactions faster and more transparent, while simplifying the process from issuance to settlement.