SEBI, RBI launch Demat 2.0 pilot for tokenised corporate bonds

SEBI and RBI have launched a pilot framework for tokenised corporate bonds using distributed ledger technology (DLT) and the central bank digital currency (CBDC), known as Demat 2.0. The initiative, which does not create a new asset class or require investors to open a new demat account or complete a fresh KYC process, aims to streamline securities and money movements through atomic settlement.

The first phase of the pilot has already been completed with three issuers, with REC Ltd being the first to conduct a tokenised corporate bond pilot under SEBI's regulatory sandbox framework. The next phase will introduce secondary-market transfers and trading in a controlled environment before the system is eventually opened to retail investors.

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