India Tests Blockchain Bond Market with Demat 2.0 Pilot
India's securities market is testing blockchain technology to streamline bond transactions and reduce settlement risk. The Demat 2.0 pilot project, launched by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), aims to create a more efficient and transparent corporate bond market.
Under the program, issuers create digital tokens on a private blockchain ledger, while investors receive tokens through their existing demat accounts. The RBI's wholesale digital rupee supplies the payment leg, linking bond transfers and payments for near-instant settlement.
The pilot has already seen issuances worth ₹1,025 crore from REC, L&T, and IIFL, with plans to extend secondary trading and retail access in its second rollout stage. The project's success could pave the way for broader adoption of tokenization in India's digital-asset ecosystem.