India Launches Blockchain-Based Tokenised Bonds Pilot
India's Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) have launched a pilot project to issue tokenised bonds, also known as Demat 2.0, on the blockchain.
The project, which started in September 2026, allows companies to issue bonds as digital tokens on a shared blockchain record, eliminating the need for physical certificates.
The benefits of tokenised bonds include cheaper costs, quicker settling, and convenient access. With fewer intermediaries and less paperwork, investors can save on fees, and trades can be settled in as little as a few seconds, similar to crypto transfers.
The RBI's wholesale digital rupee, e₹, is used for payment, enabling atomic settlement, where cash and bonds are transferred simultaneously.
The pilot project is currently limited to institutional players, with REC Limited, L&T Limited, and IIFL being the first issuers, raising ₹1,025 crore. However, the RBI has stated that the goal is to make issue, settlement, and servicing faster and more efficient, with fewer mistakes.
The tokenised bonds retain the same ISIN, coupon, and rating as regular bonds, providing a familiar investment experience for investors.