India Taps Blockchain for $620 Billion Corporate Bond Market
India has launched a $620 billion tokenized bond experiment using its digital rupee. The pilot, called Demat 2.0, is testing blockchain-based corporate bonds with the Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).
The system allows corporate bonds to be issued and held as digital tokens on a distributed ledger managed by India's statutory depositories.
Three companies have already raised a combined ₹1,025 crore ($116 million) through tokenized bonds: REC, L&T, and IIFL Finance. REC has issued ₹500 crore in what it calls India's first tokenised corporate bond, followed by similar issues from L&T.
The digital rupee is used for settlement, enabling atomic delivery-versus-payment, where the bond and payment change hands at the same time.