The Securities and Exchange Board of India has launched Demat 2.0, a pilot that lets tokenised corporate bonds settle with the Reserve Bank of India’s wholesale digital rupee through existing demat accounts, reducing settlement risk.

In a SEBI FAQ, the initiative is described as “Demat 2.0: Pilot for Tokenised Corporate Bonds.” Bond terms stay unchanged, but the bonds are issued as digital tokens on a distributed ledger run by regulated market institutions.

State-owned power-sector lender REC raised 5 billion rupees (US$52.3 million) through the system. Larsen & Toubro, an Indian engineering and construction company, followed with another 5 billion rupees (US$52.3 million). IIFL Finance, an Indian non-bank lender, also issued 250 million rupees (US$2.6 million).

Tokenised bonds are debt instruments issued using distributed ledger technology. Delivery-versus-payment means securities are delivered only when payment is made, helping reduce settlement risk.

🔗 Source: CoinDesk