India launches tokenized bond pilot with $107M issued
India tokenized corporate bonds pilot streamlines issuance and settlement with digital tokens Boost speed, automate payments, and see how Demat 2.0 could open wider market access
India’s securities regulator and central bank have launched a pilot for tokenized corporate bonds, with three companies issuing a combined 10.25 billion rupees, or about $107 million, through the new system.
The Securities and Exchange Board of India said the initiative, called Demat 2.0, lets corporate bonds be issued and held as digital tokens on a distributed ledger operated by statutory depositories. The platform also connects to the Reserve Bank of India’s wholesale central bank digital currency system for settlement.
The first issuances came from REC, Larsen & Toubro, and IIFL. SEBI said the setup can speed up fund transfers, automate payments with smart contracts, and may later support secondary trading and retail investor access if the pilot expands.