Private Ethereum blockchain bonds worth $33.8m sold by World Bank

As per the Commonwealth Bank of Australia (CommBank), the World Bank raised $33.8 million by selling the “blockchain-operated debt instrument” (bond-i). The sale was managed jointly by the CommBank, RBC Capital Markets and TD Securities. CommBank further added that both new and existing investors participated and that it was “the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger technology.”

Andrea Dore, the World Bank’s head of funding, said in a press release:

“We are happy to see the continued, strong support and collaboration from investors and partners. The World Bank’s innovation and experience in the capital markets is key to working with our member countries to increase digitization to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals.”

Overall, the world bank has issued $108 million of these bonds on a private version of the ethereum blockchain. CommBank’s Blockchain Centre of Excellence was responsible for building the blockchain platform. 

Sophie Gilder, head of blockchain and AI at CommBank, said:

“CBA now has tangible evidence from our first bond offering using blockchain technology and subsequent bond management, secondary trading and tap issue via the same platform, that blockchain technology can deliver a new level of efficiency, transparency and risk management capability versus the existing market infrastructure. Next, we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance.”