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The World Bank has commissioned an Australian bank exclusively arrange the first global bond that will be created, assigned, transferred, and managed using blockchain technology.
Once launched, the $AUD Kangaroo bond, more popularly called “bondi-i” (Blockchain Offered New Debt Instrument), will be “distributed on a blockchain platform operated by the World Bank and CBA in Washington and Sydney, respectively.”
The bond has been developed with the help of the investor community including Northern Trust, QBE, and Treasury Corporation of Victoria, while the blockchain platform was developed by the CBA Innovation Lab’s Blockmail Centre of Excellence.
CBA general manager of institutional banking and markets international James Wall believes the collaborative work with World Bank will be a revolutionary demonstration of how blockchain technology can serve as a facilitating platform for different participants.
Wall said in statement that they fully support World Bank’s “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.”
The World Bank releases between US$50bn to $60bn of bonds annually as part of its directive to reduce poverty and promote sustainable development. Its focus has increased on helping countries shift to technology-led sustainable economies, while exploring the benefits of blockchain and other disruptive technologies. The commitment is “at the heart of the World Bank’s Innovation Lab,” according to World Bank Group CIO, Denis Robitaille.
“We know blockchain has the potential to revolutionise financial services and markets, and this transaction is a significant step towards that future state. By working collaboratively with the World Bank, we were able to find solutions to technical and legal considerations to make this ground breaking transaction a reality,” CBA head of Blockchain, Innovative Labs, Sophie Gilder said.
