Demat 2.0: Tokenised bonds could settle instantly against CBDC payments, says NSDL MD
Padmaja Chunduru, Managing Director and CEO of the National Securities Depository Limited (NSDL), has outlined a vision for 'Demat 2.0' which leverages blockchain technology to modernize India's securities market. By utilizing tokenized bonds, the NSDL aims to enable near-instantaneous settlement cycles, significantly reducing the traditional T+1 or T+2 settlement delays. This transition is designed to integrate seamlessly with the Reserve Bank of India's Central Bank Digital Currency (CBDC), facilitating atomic settlement where the exchange of assets and payments occurs simultaneously. Such a shift is expected to enhance market efficiency, lower counterparty risk, and improve liquidity for institutional and retail investors alike. The initiative represents a strategic move by India's primary depository to embrace distributed ledger technology for core financial infrastructure. By aligning tokenized securities with digital rupee payments, the NSDL is positioning itself at the forefront of global efforts to modernize clearing and settlement systems. This development is critical for the RWA market as it demonstrates how national-level infrastructure providers are actively adopting blockchain to replace legacy settlement processes.


