SEBI, RBI Launch Demat 2.0 Pilot for Tokenised Corporate Bonds, CBDC Settlement

SEBI and the Reserve Bank of India (RBI) have launched Demat 2.0, a pilot project for tokenised corporate bonds, at the Global Fintech Fest 2026 in Mumbai, as per news reports.  

RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey jointly announced the initiative. 

Corporate Bonds on Distributed Ledger 

Demat 2.0 uses distributed ledger technology (DLT) to create corporate bonds as digital tokens on a shared electronic ledger. The ledger is maintained by market infrastructure institutions and owned by depositories.  

The bond itself remains the same legal instrument, with existing investor protections continuing to apply. 

CBDC-Based Settlement 

The platform is linked to the RBI’s wholesale central bank digital currency, or e₹, through the Unified Market Interface. It allows atomic settlement, under which the bond and payment are transferred at the same time. 

This removes the gap between the two sides of a transaction and can reduce settlement risk. The system also allows smart contracts to automate interest payments and redemption. 

Three Issuers Raise ₹1,025 Crore 

The pilot has already seen three tokenised bond issues, with companies raising a total of ₹1,025 crore. REC raised ₹500 crore from 18 investors on September 7, while L&T raised ₹500 crore from four investors on September 9, 2026. 

IIFL was the third issuer, raising ₹25 crore from one investor on September 9. REC was the first company to issue a tokenised corporate bond under the pilot. 

Faster Payments and Servicing 

Under the existing process, issuers or registrars obtain bondholder details, calculate payments and route funds through the banking system. Demat 2.0 allows authorised institutions to access bondholder information on the shared ledger. 

Interest and redemption payments can be triggered through smart contracts, with e₹ credited to investors’ CBDC wallets on the due date. Issuers can also receive funds on the same day as bidding, compared with the usual two to three days. 

Next Phase of the Pilot 

The first phase is focused on bond issuances. Later phases are expected to introduce trading through existing request-for-quote platforms, followed eventually by retail investor access. 

Tokenisation could also be extended to equity, mutual fund units, and electronic gold receipts as the system develops. 

Read More: Defence Ministry Clears ₹1.1 Lakh Crore Military Acquisitions; 98% Sourcing from India! 

Conclusion  

The Demat 2.0 pilot has started with corporate bond issuances using blockchain-based technology and CBDC settlement. Further phases will cover trading and retail access. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.