According to Huoxing Finance, on September 14, India’s Securities and Exchange Board (SEBI) and the Reserve Bank of India (RBI) launched the “Demat 2.0” pilot, introducing corporate bond issuance and settlement onto a permissioned distributed ledger, targeting a corporate bond market valued at approximately $620 billion. So far, three companies—REC, Larsen & Toubro, and IIFL Finance—have raised a combined total of INR 102.5 billion (approximately $1.07 billion) through this system. REC issued India’s first tokenized corporate bond on September 7, raising INR 50 billion. The system links tokenized bonds with the RBI’s wholesale digital rupee, enabling synchronized settlement of bonds and funds via a unified market interface, while using smart contracts to automate interest payments and principal redemption. SEBI stated that tokenization does not alter the original legal terms, credit ratings, or investor protections of the bonds, and plans are underway to open secondary trading and retail participation in the future.
India Launches $62 Billion Corporate Bond Tokenization Pilot; Three Firms Raise $1.07 Billion
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Summary
India’s Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) have launched the 'Demat 2.0' pilot, using a permissioned distributed ledger for corporate bond issuance and settlement. The initiative targets India’s $620 billion corporate bond market. Three companies—REC, Larsen & Toubro, and IIFL Finance—have raised $10.7 billion so far. REC issued India’s first tokenized corporate bond, raising ₹5 billion. The system uses on-chain data to link bonds with the RBI’s wholesale digital rupee, enabling synchronized settlement and smart contract-based management of interest payments and redemptions. SEBI stated that tokenization does not alter legal terms, credit ratings, or investor protections. Future plans include secondary trading and retail participation.
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