India tokenizes $620 billion bond market with digital rupee

India’s central bank has begun tokenizing its $620 billion corporate bond market with digital rupee settlement, a direct move toward institutional on-chain rails. This step arrives while oil prices sit above $100 on Red Sea disruptions and major central banks tighten rather than ease, so liquidity conditions remain pressured even as Bitcoin holds near $77,000 with modest outflows from exchanges. The market prices tighter financial conditions from energy shocks yet shows no surge in sell pressure, leaving open whether on-chain settlement demand can offset dollar scarcity or whether higher yields simply crowd out risk assets. The hard question is whether tokenization of sovereign debt markets scales fast enough to matter before the next liquidity squeeze tests Bitcoin’s role as a non-sovereign settlement asset.