India Tokenizes $620 Billion Corporate Bond Market with Blockchain Pilot
India has launched a pilot project to issue and settle corporate bonds as blockchain tokens. The program, called 'Demat 2.0,' was unveiled by the Securities and Exchange Board of India (SEBI) alongside the Reserve Bank of India (RBI). Three companies have already tapped into the framework, raising a combined 1,025 crore rupees ($107 million).
The system links token ledgers to the RBI's wholesale digital rupee through a Unified Market Interface. This enables atomic settlement, where bond and payment change hands simultaneously.
SEBI emphasized that the bonds remain legally unchanged, retaining their credit ratings, debenture trustees, listing rules, and investor protections. The market will not be fragmented, and investors can hold tokens in existing Demat accounts without fresh know-your-customer checks.