India Launches Tokenized Corporate Bond Pilot for $62 Billion Market

India has begun a pilot program to tokenize its $62 billion corporate bond market. Three companies issued a total of 1,025 crore rupees (approximately $144 million) in bonds through this system. The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) announced the launch of the 'Demat 2.0' pilot on September 10.

The initiative records corporate bonds as digital tokens on a distributed ledger, enabling simultaneous settlement of bonds and payments using wholesale digital rupees. Power Finance Corporation (REC) raised 500 crore rupees on September 7, while L&T and IIFL Finance each raised 500 crore and 25 crore rupees respectively on September 9.

SEBI plans to advance the tokenized corporate bond market by enabling secondary trading and allowing retail investor access in future phases.