The World Bank will be partnering with the Commonwealth Bank of Australia (CBA) to arrange and issue a blockchain-facilitated bond—the first in the world.
In a press release last August 10, the World Bank appointed the CBA to create a bond “created, allocated, transferred and managed through its life cycle” solely through blockchain. Numerous investors have expressed their interest towards the upcoming blockchain bond.
“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 two organizations stated in the press release.
The bond has been termed “bond-i”, an acronym standing for Blockchain Offered New Debt Instrument. The said bond will be launched through a platform jointly run by CBA and the World Bank after being inspected and deliberated by interested investors.