India's SEBI Launches Demat 2.0 Pilot With Over $100 Million in Tokenized Bonds
(21 days ago) · 1 source · Summarized by CryptoBipto
India's Securities and Exchange Board (SEBI) has launched a pilot program called Demat 2.0, which involves the tokenization of bonds on blockchain infrastructure. The pilot reportedly includes over $100 million worth of tokenized bonds. The initiative represents a significant step by India's primary securities regulator toward integrating distributed ledger technology into the country's capital markets.
WHY IT MATTERS
Think of a bond as an IOU issued by a company or government — investors lend money and receive interest payments in return. Traditionally, tracking who owns these bonds involves layers of intermediaries and paperwork. Tokenization means creating a digital version of that bond on a blockchain, which is essentially a shared digital ledger that multiple parties can verify. India's securities regulator is testing whether this technology can make bond markets more efficient. For people new to crypto, this is a notable example of a major government regulator using blockchain technology not for cryptocurrencies, but to modernize how traditional financial products are managed and traded. The 'Demat' system is how India already tracks stock and bond ownership electronically, and this pilot upgrades that system with blockchain capabilities.
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- theblock.co
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