World’s first blockchain bond to be launched
The World Bank has chosen the Commonwealth Bank of Australia to help organize a new Ethereum blockchain bond denominated in Australian dollars.
The bond is projected to raise between $50-$100m and proceeds will go towards sustainable development initiatives.
The Kangaroo bond, referring to foreign bonds issued in Australia in the local currency, has been named bond-i, an acronym standing for Blockchain Offered New Debt Instrument and also refers to the tourist famous Bondi Beach in Sydney.
Bond-i will be the first digital bond to be entirely created, managed, allocated and even transferred using blockchain technology. When launched, this Kangaroo bond will be issued and distributed on a blockchain platform that runs on an on a private Ethereum network, which will be managed and operated by the CBA and the World Bank
Funds raised from the new blockchain bond will go towards endeavours tied to the World Bank’s Reconstruction and Development division.
The global financial giant has often been at the forefront of financial innovation. The Bank issued the first globally traded and settled bond in 1989, as well the first electronic bond in 2000. (continues…)