India launches tokenized corporate bond pilot with 10.25 billion rupees issued
India has launched a pilot for tokenized corporate bonds, with the first three issuers raising a combined 10.25 billion rupees, or about $107 million, through a new regulated market setup. The Securities and Exchange Board of India said the Demat 2.0 framework allows corporate bonds to be issued and held as digital tokens on a distributed ledger operated by the country’s statutory depositories, while settlement is handled through the Reserve Bank of India’s wholesale central bank digital currency via the Unified Market Interface. The initial issuers were public-sector lender REC, engineering conglomerate Larsen & Toubro, and non-bank lender IIFL. SEBI said the system lets issuers receive funds on the day of bidding, with atomic settlement removing the time gap between money and bond transfers and smart contracts automating interest and redemption payments. The regulator also said later phases of the pilot will add secondary trading through existing request-for-quote platforms and open access to retail investors, while keeping tokenized bonds within the country’s current legal and investor-protection framework.








