NSDL MD says Demat 2.0 uses atomic settlement for instant tokenized bond trading
The Reserve Bank of India and the Securities and Exchange Board of India announced a pilot project for tokenized corporate bonds linked to the central bank digital currency. NSDL Managing Director Vijay Chandok described the system as an atomic mechanism where security transfer and payment occur simultaneously.
NSDL Managing Director Vijay Chandok stated that Demat 2.0 aims to enable instant settlement of tokenized bonds against payments made through the central bank digital currency. The initiative utilizes an atomic settlement mechanism, ensuring that the transfer of securities and the corresponding payment happen at the exact same moment. Chandok noted that this configuration involves two distinct wallets: a securities wallet holding bond tokens and a currency wallet containing the digital rupee. The pilot project was launched on Thursday during the Global Fintech Fest 2026 in Mumbai by Reserve Bank of India Governor Sanjay Malhotra and Securities and Exchange Board of India Chairman Tuhin Kanta Pandey. The project is designed to test the issuance, holding, trading, and settlement of corporate bonds as digital tokens using Distributed Ledger Technology. It integrates with the RBI's wholesale CBDC infrastructure to handle the money component of transactions. Chandok emphasized that wider trading will depend on final regulatory approval and market readiness.
