India launches Demat 2.0 pilot for tokenised corporate bonds
Sebi and the RBI have jointly launched a new pilot project allowing corporate bonds to be issued as digital tokens using distributed ledger technology.
The Securities and Exchange Board of India (Sebi) announced the successful launch of Demat 2.0, a pilot program for tokenised corporate bonds, at the Global Fintech Fest in Mumbai. The event was attended jointly by RBI Governor Sanjay Malhotra and Sebi Chairman Tuhin Kanta Pandey. This new infrastructure connects the bond market with the RBI's wholesale central bank digital currency, or e-rupee, through a distributed ledger system maintained by market institutions and depositories. Under this pilot, bonds are created as digital tokens. The system enables atomic settlement where both the transfer of the bond and the movement of funds occur simultaneously to eliminate pending transactions. Sebi stated that automated smart contracts can handle interest payments and redemption automatically. This project aims to improve efficiency in securities market transactions and reduce settlement risk for investors.
