The Commonwealth Bank of Australia has partnered with the World Bank to issue the first Bond Issue utilizing Block Chain Technology.
The CBC which is one of the Big Four commercial banks in Australia won a mandate to be allowed to arrange the Bond Issue. The Bond Issue will be created, transferred and managed by a block chain platform.
The technology, already developed by CBA’s in-house blockchain lab, aims to have key parties in a bond issuance process such as investors and banks to be participating nodes in a distributed network. In this way, capital for the bond can be raised and transacted more efficiently.
World Bank’s treasurer Arunma Oteh said in the release that the technology is in the position for the launch after a year of working with the CBA. That said, the issuance timeline and size of the bond remain unknown at this stage.
According to the release, the World Bank issues $50 to $60 billion in bonds every year as part of its mandate to reduce poverty and improve sustainability for worldwide markets.
World Bank’s chief information officer Denis Robitaille commented in the release:
“This pioneering bond is a milestone in our efforts to learn how we can advise our client countries on the opportunities and risk that disruptive technologies offer as we strive to achieve the Sustainable Development Goals.”