India’s Pilot for Tokenized Corporate Bonds Launched
- India’s SEBI and RBI launched “Demat 2.0,” a pilot for issuing corporate bonds as digital tokens on a permissioned ledger.
- The initiative targets a $620 billion market, with bonds issued on ledgers run by NSDL and CDSL.
- REC, Larsen & Toubro, and IIFL Finance raised a combined ₹1,025 crore (~$107 million) through the system.
- The system links to the RBI’s wholesale digital rupee for atomic settlement, automating interest payments and redemptions via smart contracts.
- Bonds retain their legal terms, credit ratings, and investor protections, with plans for secondary trading and retail access in future phases.
India is integrating blockchain technology into its corporate bond market through tokenization, enhancing efficiency with instant settlement using the digital rupee. This move aligns with India’s cautious approach to private cryptocurrencies while leveraging blockchain innovations.
The pilot project demonstrates India’s commitment to modernizing financial markets by embracing distributed-ledger technology within regulatory frameworks. The initial success of raising ₹1,025 crore indicates strong potential for further adoption in this $620 billion market.Source
