India Launches Tokenized Bond Pilot for $620B Corporate

India’s securities regulator SEBI and the Reserve Bank of India (RBI) have launched the Demat 2.0 pilot, aimed at testing tokenized corporate bonds on a distributed ledger technology. This initiative is significant as it marks a major step towards modernizing India’s approximately $620 billion corporate debt market. The pilot allows simultaneous securities and payment settlements using the RBI’s wholesale digital rupee, which could streamline operations in the market. WuBlockchain highlighted this groundbreaking development.

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The broader crypto market is reflecting mixed signals, but the launch of India’s tokenized bond pilot may indicate a shift in financial technology adoption. Under the Demat 2.0 pilot, companies such as REC, L&T, and IIFL have issued a combined ₹10.25 billion (approximately $116 million) in bonds. This use of blockchain technology and the digital rupee for atomic settlement could enhance transparency and efficiency in the corporate debt sector. As such, market participants are likely to be closely monitoring the pilot’s success and its implications for future corporate financing strategies.

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