CBA Blockchain bond. Commonwealth Bank has been mandated by the World Bank, to be the sole arranger of the first bond globally to be created, allocated, transferred and managed using blockchain technology.
Commonwealth Bank has been mandated by the World Bank to be the sole arranger of the first bond globally to be created, allocated, transferred and managed using blockchain technology.
The $AUD Kangaroo bond, termed ‘bond-i’ – Blockchain Offered New Debt Instrument – has been developed with the support and input of the investor community including Northern Trust, QBE and Treasury Corporation of Victoria.
Once launched the bond will be issued and distributed on a blockchain platform operated by the World Bank and CBA in Washington and Sydney, respectively.
This collaboration built on the longstanding partnership between the two organisations, with the World Bank’s 70-year track record of innovation in the capital markets and CBA’s globally recognised Blockchain Centre of Excellence combining to deliver the project successfully.
James Wall, Executive General Manager of Institutional Banking & Markets International, CBA said:
“We take a collaborative approach to innovating and have a track record of partnering with other leading financial institutions, government bodies and corporates to innovate through blockchain. We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.”
“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.”
As part of its mandate to reduce poverty and promote lasting development, the World Bank issues between US$50-US$60 billion annually in bonds for sustainable development. It is increasing its focus on helping countries transition to sustainable economies that are technology-led, while exploring the benefits of disruptive technologies, such as blockchain, across all its operations to accelerate progress towards the Sustainable Development Goals.