India Launches $620 Billion Corporate Bond Market Tokenization Pilot

By: www.coindesk.com|2026/09/11 05:48:00

The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) have initiated a corporate bond tokenization pilot called "Demat 2.0," bringing the $620 billion corporate bond market onto a distributed ledger and using digital rupees for fund settlement. This system connects tokenized bonds with the RBI's unified market interface, enabling atomic settlement of securities and funds, and automatically handling interest payments and redemptions through smart contracts. REC, Larsen & Toubro, and IIFL Finance have issued tokenized bonds worth ₹50 billion, ₹50 billion, and ₹2.5 billion respectively, totaling ₹102.5 billion. Regulators have stated that the legal nature of the bonds, the issuer's payment obligations, and investor rights remain unchanged, with plans to further open trading and explore participation from individual investors in the future.

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