Two more Indian tokenized bonds issued, as central bank eyes gold next
RWA Signal Insight
InfrastructureIndia's Demat 2.0 tokenized bond pilot has expanded with two new issuances following the initial REC Limited offering. Engineering firm L&T Limited raised ₹5 billion, while brokerage IIFL secured ₹250 million, bringing the total pilot volume to ₹10.25 billion across three issuances. These assets are natively digital tokens issued on a DLT network managed by central securities depositories NSDL and CDSL, rather than mere digital twins. The pilot currently focuses on issuance and smart contract-based asset servicing for institutional participants. SEBI has provided regulatory clarity on the architecture, while the Reserve Bank of India has indicated interest in tokenizing gold as the next asset class. The project is structured in three stages, with future phases planned to introduce secondary market trading and retail access. This initiative represents a significant shift in Indian capital markets by integrating DLT directly into the authoritative record-keeping process of national depositories.
Key points
- L&T Limited and IIFL issued ₹5.25 billion in natively digital bonds on DLT.
- Total pilot issuance reached ₹10.25 billion across three institutional transactions.
- NSDL and CDSL operate the DLT network as the authoritative record of ownership.
- RBI signaled gold as the next potential asset class for tokenization.
Background
Demat 2.0 is an Indian regulatory initiative aimed at modernizing the country's securities infrastructure by transitioning from traditional electronic book-entry systems to distributed ledger technology. It leverages the existing authority of central securities depositories, NSDL and CDSL, to ensure that tokenized assets remain legally compliant under the Depositories Act while benefiting from smart contract automation.