India Launches Tokenized Bond Pilot for Institutional Investors

The Securities and Exchange Board of India (SEBI) has initiated a pilot program for tokenized corporate bonds, utilizing the Reserve Bank of India’s wholesale digital rupee for atomic delivery-versus-payment settlement. The project, dubbed Demat 2.0, saw initial issuances from REC Limited, L&T Limited, and IIFL totaling ₹1,025 crore. These digital tokens function as native assets on a private, permissioned distributed ledger while maintaining the same legal and economic terms as conventional bonds. The system is operated by market infrastructure institutions, with depositories managing private keys and maintaining authoritative ownership records.