Australian bank using Ethereum for bond transactions

Australia’s Commonwealth Bank (CBA) has been chosen by the World Bank to deliver the world’s first blockchain bond.

The $AUD Kangaroo bond will be issued and distributed on a blockchain platform operated by the World Bank in Washington and CBA in Sydney.

James Wall, an executive at CBA, said it’s an example of the bank collaborating with other leading institutions, government bodies and corporates to innovate through blockchain.

“We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants,” Mr Wall said.

“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.”

Commonwealth Bank Blockchain

Arunma Oteh, World Bank Treasurer, said innovation is important to meet investor needs and the needs of clients.

“I am therefore delighted that after a year of working with Commonwealth Bank of Australia, we are in a position to launch our first blockchain bond transaction,” he said.

“Microsoft’s experience and support have also been instrumental to achieving this historic milestone.

“Our sincere appreciation to our pioneer blockchain bond investors, who are partnering with us on this transaction because of our common desire to strengthen markets, improve efficiency and transparency, and enable more robust issuance processes.

“Our goal is to continue to harness innovation for the benefit of markets and our mission of ending poverty and boosting shared prosperity.”

CBA and World Bank are using a private Ethereum blockchain for the project.

“Ethereum currently has the largest and most active development community globally, and offers the functionality we require,” a CBA statement said.

“However other blockchains are developing rapidly and CBA remains open to other options in the future.”

Last month, CBA announced it is using the Ethereum blockchain to export fresh food overseas.

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.