India launches Demat 2.0 pilot for tokenized bond settlement

tokenized bonds blockchain settlement Demat 2.0 central bank digital currency corporate debt

The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) have launched the Demat 2.0 pilot, a framework designed to issue and settle tokenized corporate bonds using blockchain technology. This initiative utilizes distributed ledger technology (DLT) and the RBI’s wholesale central bank digital currency (CBDC) to enable atomic settlement, where the transfer of securities and payment occurs simultaneously.

In the first phase of the pilot, three companies successfully issued a total of ₹1,025 crore in tokenized bonds. REC Limited raised ₹500 crore, Larsen & Toubro raised ₹500 crore, and IIFL Finance completed an issuance of ₹25 crore. The framework maintains existing investor rights, coupon rates, and legal protections, treating the tokens as conventional securities rather than a new asset class.

Following the successful completion of phase one, SEBI Chairman Tuhin Kanta Pandey announced that the next phase will focus on introducing secondary market trading within the DLT-based framework. Future expansions of the pilot may include other financial instruments such as equities, mutual fund units, and electronic gold receipts.

Entities

IIFL Finance · Larsen & Toubro · Orange Retail Finance India Private Limited · REC Limited · Reserve Bank of India · Sanjay Malhotra · Securities and Exchange Board of India · Tuhin Kanta Pandey

Claims

What the coverage asserts, and how many sources carry each claim.

[● 6 SOURCES] The pilot uses the RBI’s wholesale central bank digital currency (CBDC) to enable atomic settlement of bonds. crypto.news · www.cointrust.com · www.tronweekly.com · samacharnama.com · www.latestly.com · +1 more
[● 2 SOURCES] IIFL Finance completed a tokenized issuance of ₹25 crore. crypto.news · www.tronweekly.com
[● 6 SOURCES] SEBI and the RBI launched the Demat 2.0 pilot to use blockchain technology for issuing and settling tokenized corporate bonds. crypto.news · samacharnama.com · www.cointrust.com · newsable.asianetnews.com · www.tronweekly.com · +1 more
[DISPUTED] Larsen & Toubro raised ₹500 crore through the tokenized bond pilot. crypto.news · www.tronweekly.com
[● 3 SOURCES] Demat 2.0 utilizes distributed ledger technology (DLT) for existing corporate bonds rather than creating a new asset class. newsable.asianetnews.com · www.tronweekly.com · crypto.news
[● 2 SOURCES] The next phase of the Demat 2.0 pilot will focus on introducing secondary market trading within the DLT-based framework. newsable.asianetnews.com · crypto.news
[DISPUTED] REC Limited raised ₹500 crore through the first pilot issuance of tokenized corporate bonds. crypto.news · www.tronweekly.com · www.latestly.com