RBI and SEBI Launch Demat 2.0 Pilot to Test Tokenised Corporate Bonds
RWA Signal Insight
InfrastructureThe Reserve Bank of India and the Securities and Exchange Board of India have launched the Demat 2.0 pilot program to test tokenized corporate bonds. Announced at the Global Fintech Fest in September 2026, the initiative utilizes distributed ledger technology to integrate securities issuance with the digital rupee, India's wholesale CBDC. The pilot successfully completed three issuances totaling ₹1,025 crore from REC Limited, Larsen & Toubro, and IIFL. By enabling atomic settlement, the system reduces transaction times from several days to a single day while automating coupon payments and redemptions. This integration with existing depository infrastructure aims to enhance capital access and reduce administrative overhead for issuers. The project represents a significant regulatory effort to modernize India's bond market through blockchain-based automation. Future phases of the pilot intend to expand the framework to include secondary-market trading and eventually retail investor participation.
Key points
- Demat 2.0 pilot successfully issued ₹1,025 crore in tokenized corporate bonds.
- Settlement time reduced from three business days to a single day.
- System integrates tokenized bonds directly with India's wholesale digital rupee CBDC.
- Participants included REC Limited, Larsen & Toubro, and IIFL in September 2026.
Background
The Reserve Bank of India (RBI) is the nation's central bank, responsible for monetary policy and the issuance of the digital rupee (e-Rupee). The Securities and Exchange Board of India (SEBI) acts as the primary regulator for the Indian securities market, overseeing exchanges and depositories. Together, they manage the regulatory framework for financial instruments and market infrastructure in India.