institutional-infrastructure · India · tokenization · corporate bonds · CBDC
India Launches Demat 2.0 Pilot for Tokenized Corporate Bonds
The regulated pilot uses distributed-ledger infrastructure for bond issuance and connects the cash leg to the Reserve Bank of India's wholesale digital currency. It is not evidence of broad market adoption.
India's Securities and Exchange Board and central bank have launched Demat 2.0, a pilot for issuing, holding and settling tokenized corporate bonds.
SEBI says the system creates bonds as digital tokens on distributed-ledger infrastructure maintained by depositories. It connects to the Reserve Bank of India's wholesale central-bank digital currency through the Unified Market Interface, allowing the security and cash legs to settle together.
Three issuers raised a combined ₹1,025 crore in the pilot's first phase. REC raised ₹500 crore from 18 investors, Larsen & Toubro raised another ₹500 crore from four investors, and IIFL Finance raised ₹25 crore from one investor.
Those transactions establish that regulated issuance and settlement have occurred. They do not establish broad secondary-market liquidity, retail access, lower all-in costs or widespread adoption across India's corporate-bond market.
The next evidence is repeat issuance, secondary trading, operational resilience and participation beyond the first three issuers. Those measures will determine whether Demat 2.0 becomes durable market infrastructure rather than a bounded pilot.
Sources and disclosures
Primary source: Securities and Exchange Board of India, September 10, 2026. Transaction totals and system design are regulator-reported. Supporting coverage: The Block, September 11, 2026.
Update note
Observed September 13, 2026 at 20:05 BRT. The article distinguishes a live regulated pilot from economy-wide adoption.