Australis’s largest bank, Commonwealth Bank of Australia (CBA) has been mandated by the World Bank to issue bonds exclusively using the blockchain technology, according to release by CBA on August 10.
CBA will be the sole organizer of the world’s first bond that is to be created, allocated, transferred and managed using the blockchain technology. The $AUD Kangaroo bond termed as ‘bond-i’- Blockchain Offered New Debt Instrument will be managed and operated by World Bank in Washington and CBA in Sydney.
For this project, both the institutions will be using private Ethereum blockchain as it has the largest and most active community globally. CBA has also cleared that in future it remains open to other blockchain projects which are in the rapid development phase. An independent review has been conducted by Microsoft of the CBA blockchain architecture, security and resilience.
A joint release from the two institutions stated:
“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.”
CBA Executive General Manager of Institutional Banking & Markets International James Wall said:
“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.”
This news was provided by Crypto News India, our partnering media source in India.