Markets regulator Sebi on Thursday announced the launch of ‘Demat 2.0’, a pilot project aimed at tokenising corporate bonds and enabling faster, more efficient settlement of transactions.
The initiative will facilitate atomic settlement, allowing transactions and payments to be completed simultaneously and instantly, reducing settlement risks and improving efficiency in the corporate bond market.
Demat 2.0 is connected to the Reserve Bank of India’s wholesale Central Bank Digital Currency (CBDC) through the Unified Market Interface (UMI) developed by the central bank.
The announcement was made jointly by RBI Governor Sanjay Malhotra and Sebi Chairman Tuhin Kanta Pandey at the Global Fintech Fest in Mumbai.
The tokenisation initiative marks a significant step toward integrating digital assets and central bank digital currency infrastructure with India's securities market. It is expected to provide a more streamlined settlement mechanism while exploring the potential of blockchain-based technology in capital markets.
The pilot comes as Indian financial regulators continue to explore digital solutions aimed at improving transparency, settlement efficiency and accessibility across financial markets.
