India’s securities regulator has launched a pilot called “Demat 2.0” for tokenised corporate bonds, marking a notable experiment in bringing blockchain-style tokenisation into the regulated bond market. SEBI announced the successful launch on September 10 during a week of major fintech policy discussion.
What tokenisation is trying to do
Tokenisation represents ownership or rights in a security using digital tokens while the underlying instrument remains subject to securities rules. The attraction is the possibility of more efficient issuance, transfer, reconciliation and settlement without abandoning the protections of regulated market infrastructure.
Why a pilot matters more than a headline
A controlled pilot lets regulators and market institutions test legal ownership, custody, interoperability and investor-protection questions before any wider rollout. Those details are critical because a token is only useful if its legal and operational status is unambiguous.
Corporate bonds are a logical test case
India has been trying to deepen its corporate-bond market and improve access, transparency and distribution. Digital workflows could reduce friction, but the regulator will need to ensure that speed does not weaken know-your-customer, disclosure or settlement safeguards.
What to watch
The most important next steps are the pilot’s scope, the participating market institutions and how token records interact with conventional depository systems. Investors should treat it as infrastructure experimentation, not as a new unregulated crypto product.
Bottom line
Demat 2.0 is significant because it tests tokenisation inside the securities rulebook rather than outside it.
Source: SEBI
