If your overseas subsidiary is considering tokenized bonds, ask for the default procedure before approving the wallet setup.

The CoinDesk report describes India's Demat 2.0 pilot: corporate bonds represented as digital tokens, with payment settled through the RBI's wholesale digital rupee. The $620 billion figure refers to the corporate bond market, not an amount already tokenized. Secondary trading and retail access are described as later phases.

For a treasury team, the important distinction is between completing payment and establishing an enforceable position.

A transaction record may show that funds moved. The offering documents, recognized ownership records and custody structure must explain what the company acquired—and how it can exercise those rights.

I have followed blockchain since 2011. When reviewing a tokenized product, I want to compare the wallet address with the legally recognized holder. If they sit at different levels of the structure, the documents need to explain the connection.

Before approval, request a worked transaction showing:
• Who issues the company's holding confirmation.
• Which record is used to establish entitlement.
• How holdings can be verified if the platform becomes unavailable.
• Who sends a default notice and who can initiate enforcement.

These are separate from whether the issuer is creditworthy. A reliable settlement process does not establish a repayment guarantee. Nor does the use of central bank money, by itself, establish central bank backing for the bond.

As a cross-border lawyer, I would also include the practical cost of exercising rights: local representation, document access, language and the location of recoverable assets.

The Indian pilot's eligibility and legal effects require confirmation with local counsel under current law. A pilot announcement is not evidence that an overseas company can participate.

A useful next step: ask the product provider to attach the ownership and enforcement map to the investment proposal. If you have a structure under review, send the outline and we can identify the missing documents.

#Tokenization #CorporateBonds #CrossBorderLegal #Treasury

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Mike Wu, China-licensed Attorney · Cross-border practice
4 languages (CN/EN/ES/JA)
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