Explained: What SEBI’s Demat 2.0 means and how tokenised corporate bonds will work

SEBI and the Reserve Bank of India on Thursday launched the Demat 2.0 pilot for tokenised corporate bonds at the Global Fintech Fest in Mumbai. The RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey announced the initiative. The pilot tests a new way of issuing, holding, trading and settling corporate bonds using distributed ledger technology (DLT) , while using the RBI’s wholesale central bank digital currency (CBDC) for the funds leg of transactions.