World Bank Launches World’s First Blockchain Bond With Australia’s (CBA)
The Commonwealth Bank of Australia (CBA), the largest bank in Australia has won a mandate from the World Bank to launch the world’s first blockchain-based bond.
The CBA will reportedly create, allocate, transfer and manage the bond using Blockchain technology.
Following its launch, the bond will be issued and managed on a private Ethereum blockchain operated by the World Bank in Washington and CBA in Sydney, the Australian ‘big four’ bank added.
The press release noted that the CBA and the World Bank had consulted with a “broad set of investors” before deciding to create bond-i – and – according to both institutions:
Blockchain has the potential to streamline processes among numerous debt capital market intermediaries and agents. This can help simplify raising capital and trading securities; improve operational efficiencies; and enhance regulatory oversight.
The initiative is a part of the World Bank’s mandate to reduce poverty and promote development, as a part of which, it issues bonds worth US$50-US$60 billion annually for encouraging sustainable development.
This collaboration built on the longstanding partnership between the two organizations, with the World Bank’s 70-year track record of innovation in the capital markets and CBA’s globally recognized Blockchain Centre of Excellence combining to deliver the project successfully.
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