India's Securities and Exchange Board and the Reserve Bank of India launched Demat 2.0, a pilot to bring the country’s roughly $620 billion corporate bond market onto distributed ledger infrastructure with settlement in the wholesale digital rupee. The system links tokenized bonds to the RBI’s Unified Markets Interface, enabling atomic delivery-versus-payment settlement. Smart contracts may also automate interest payments and redemptions. REC, Larsen & Toubro and IIFL Finance have issued tokenized bonds worth INR 50 billion, INR 50 billion and INR 2.5 billion, respectively, totaling INR 102.5 billion. Regulators said the bonds’ legal nature, issuer repayment obligations and investor rights remain unchanged, with future phases set to expand trading and explore individual investor participation.