SEBI and the RBI have launched Demat 2.0, a pilot allowing corporate bonds to be issued, held, traded and settled as digital tokens within India’s regulated securities market. The infrastructure records bonds as native digital tokens on a distributed ledger held by depositories, while ownership records remain with statutory depositories. Through the RBI’s wholesale digital rupee and a central-bank payment interface, the securities and cash legs can settle simultaneously. Three issuers raised ₹1,025 crore, or approximately $107.2 million: REC Ltd. raised ₹500 crore from 18 investors, L&T Ltd. raised a similar amount from four investors, and IIFL raised ₹25 crore from one investor. The bonds remain legally equivalent to conventional securities, with existing requirements for ratings, disclosures, trustees and investor protection continuing to apply. The rollout is planned in three stages, moving from institutional issuance to secondary trading and retail access, followed by possible expansion to other regulated entities and financial instruments.