According to the reports, this month The World Bank will be settling its first blockchain-based bond worth $73 million. Commonwealth Bank of Australia (CommBank) has recently partnered with the bank to issue a bond on the blockchain. According to Reuters, the bond will be transacted on August 28, 2018.
The two-year bond is named “Bondi”. This is the first initiative taken by The World Bank on Blockchain Technology. The bond aims to support the technology to automate the issuance process among multiple parties.
According to Coin Delite’s report, CommonBank had already built the technology in their blockchain lab. The investors and banks are also participating in a distributed network. The fund for the bond is raised and transacted more efficiently. As mentioned above, the bond is called “Bondi.” This helps to improve the efficiency of the transactions between sellers, buyers, and banks.
Commonwealth Bank announced that the issuance would be the world’s first for using blockchain to raise money from public investors. The deal will be made as a part of the $50–$60 billion in bond sales every year issued by the World Bank. This has set its goal to combat poverty and improve sustainability for worldwide markets.