SEBI Tests Tokenized Bonds with 1000 Crore Raised
SEBI's Demat 2.0 pilot uses blockchain to simplify corporate bond settlements and reduce intermediary friction.
Key points
- SEBI’s Demat 2.0 pilot has facilitated over 1,000 crore rupees in tokenized corporate bond issuances.
- The system replaces multiple separate databases with a single shared ledger to reduce reconciliation errors.
- The pilot uses a permissioned blockchain and the RBI’s eRupee infrastructure to settle transactions securely.
SEBI’s new Demat 2.0 pilot has processed over 1,000 crore rupees in corporate bonds. This marks a significant shift in how India’s debt markets handle settlement and record-keeping.
Three major issuers participated in the initial testing phase. The move aims to replace complex manual reconciliation with a shared digital ledger.
Digital bonds face operational friction
Current bond transactions require coordination among multiple independent intermediaries. Each party maintains separate databases that must be constantly cross-referenced.
A single error in any system triggers manual intervention. This increases operational costs and delays payment processing for bondholders.
The tokenization model creates a single source of truth. All parties view the same real-time data, eliminating duplicate records.
Regulators separate tech from crypto
Governments are distinguishing blockchain utility from speculative cryptocurrency assets. This allows adoption of the underlying technology without embracing digital currencies.
Finshots notes that this approach mitigates regulatory risks associated with decentralized finance. It focuses on efficiency rather than financial innovation.
Infrastructure relies on rupee rails
The pilot uses a permissioned distributed ledger for secure access. Transactions are settled using the Reserve Bank of India’s eRupee infrastructure.
This structure keeps the system within existing legal and monetary frameworks. It ensures compliance while leveraging the speed of blockchain.
