The World Bank announces plan to release the world's first blockchain bond

11 Aug, 2018
by Fifi Arisandi
News
The World Bank announces plan to release the world's first blockchain bond

The World Bank just appointed the Commonwealth Bank of Australia (CBA) to arrange the first blockchain-based bond. 

The World Bank just released an official statement of their mandate to the Commonwealth Bank of Australia (CBA) to arrange a global bond that uses distributed ledger technology in its lifecycle.

The new bond will be called bond-i, which is an acronym of Blockchain Offered New Debt Instrument and also refers to a famous spot in the country, the Bondi beach.

According to CNBC, bond-i will use a private Ethereum-based blockchain, considering that it has the required capabilities. However, CBA said that they’re open for other options in the future as the project develops.

As mentioned in the joint release, both institutions admitted that blockchain technology has the capabilities to streamline the process for numerous debt capital market intermediaries and agents, which help in simplifying raising capital and trading securities, improving operational efficiencies, and enhancing regulatory oversight.

The release also stated that there’s a strong interest from investors in the world’s first blockchain-based bond, which will be launched soon after both institutions finish a period of consultation with a broader set of investors.

The World Bank and the CBA work together with Microsoft in developing bond-i, with World Bank’s infrastructure in Washington DC running the bond on Microsoft Azure cloud computing platform.

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