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World Bank asks CBA to create blockchain bond

World Bank asks CBA to create blockchain bond

Commonwealth Bank plans to launch the world’s first bond to be created, allocated, transferred and managed using blockchain technology.

The bond will be issued and distributed on a private Ethereum blockchain operated by Commonwealth Bank in Sydney and the World Bank in Washington.

The World Bank commissioned Commonwealth Bank to be the bond’s sole arranger. Commonwealth Bank then designed and developed the blockchain platform, while Microsoft reviewed its architecture, security and resilience.

The World Bank plans to use the funds raised by the bond for sustainable development.

Commonwealth Bank’s executive general manager of international institutional banking and markets, James Wall, said the transaction would demonstrate the potential of blockchain.

“We are delighted to have partnered with the World Bank and fully support its vision of making innovative use of technology such as blockchain to increase the efficiency of financing solutions to better achieve their goal to end extreme poverty,” he said.

Commonwealth Bank’s head of blockchain, Sophie Gilder, said blockchain has the potential to revolutionise financial services and markets.

“By working collaboratively with the World Bank, we were able to find solutions to technical and legal considerations to make this ground-reaking transaction a reality,” she said.

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.



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