The World Bank has announced bond-i - the first bond to be created, allocated and transferred using blockchain technology. The Commonwealth Bank of Australia was hired to manage this process.
Arunma Oteh, World Bank Treasurer, stated: “Since our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with leveraging capital markets for development. Today, we believe that emerging technologies, equally offer transformative, yet prudent possibilities for us to continue to innovate, respond to investor needs and strengthen markets.”
Investors’ interest in bond-i has been strong, according to a press release. The World Bank believes that blockchain can make the process of bond issue more efficient and rapid, as the number of intermediaries will be reduced.
There are few technical details available, aside from the fact that the platform will use a private version of Ethereum - unlike Bitcoin - where validators must have a permission. A press release states that “the World Bank and CBA expect to launch the transaction following a period of consultation with a broader set of investors.”