SEBI has introduced “Demat 2.0,” a pilot program focused on tokenising corporate bonds. The initiative is designed to make trading and ownership transfer in the bond market faster by enabling automated settlement and payments, rather than relying only on traditional manual or batch processes.
Under the pilot, smart contracts are used to handle key cashflows such as interest and redemption. Sources also describe “atomic settlement,” a mechanism intended to coordinate the simultaneous exchange of bonds and corresponding payments, which aims to reduce settlement-related risk. Both outlets indicate that the system supports quicker settlement and improves investors’ ability to receive funds more promptly.
While the pilot is initially aimed at corporate bonds, the reporting also points to future expansion. Economic Times notes that subsequent stages are expected to broaden coverage to additional parts of the market, including secondary-market activities and potentially individual investors. Other coverage emphasizes how tokenised corporate bonds are intended to function “for you,” suggesting the investor experience is meant to improve mainly through faster processing and automation, without requiring investors to change their bond holdings.
