India’s SEBI Demat 2.0 Pilot Settles Tokenized Corporate Bonds on Shared Ledger

Three companies raised ₹1,025 crore ($107.2 million) through tokenized corporate bond issuances in the first run of India's SEBI Demat 2.0 pilot, marking the first settlement of corporate debt on a shared digital ledger within the country's existing market infrastructure. The pilot tests the issuance and settlement of corporate bonds in tokenized form while operating within the established depository framework.

The three companies issued tokenized corporate bonds with varying tenors and coupon structures, though specific issuer names, individual issuance amounts, and coupon rates have not been disclosed in the initial announcement. The pilot was structured to test how tokenized instruments perform across different bond types and maturities, allowing SEBI to assess the mechanism's viability across a range of corporate debt profiles.

The Demat 2.0 pilot operates on a shared digital ledger that integrates with India's existing depository infrastructure, including the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). The shared ledger architecture allows multiple participants — including issuers, investors, depositories, and clearing corporations — to access a synchronized record of ownership and settlement data.

SEBI has not yet announced a formal timeline for subsequent phases of the Demat 2.0 pilot, nor has the regulator specified the pilot's overall duration. The first run's completion establishes a foundation for scaling the program to additional issuers and potentially expanding beyond corporate bonds to other debt instruments.