World Bank & Australia's CommBank to issue first blockchain bond

posted 8 days ago
The World Bank Group has partnered with the Commonwealth Bank of Australia (CommBank) to issue a bond over a blockchain. CommBank, one of the "Big 4" commercial banks in Australia, said it won a mandate from the World Bank to arrange the issuance of the bond, which will be created, transferred and managed via a blockchain platform.

The technology, already developed by CommBank'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. Capital for the bond can be raised and transacted more efficiently. The World Bank reportedly issues $50 billion in bonds every year to reduce poverty and improve sustainability for worldwide markets. Denis Robitaille, CIO at the World Bank, said "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."
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