An additional AU$50m has been raised for the World Bank’s ‘kangaroo bond’ – the first bond created, allocated, transferred and managed completely using blockchain technology.
The further investments in the bond, which is being delivered by Australia’s Commonwealth Bank on the Ethereum blockchain, have been from a new ‘off-shore investor’ and from existing investors, including the New South Wales Government.
The the total capital raised for the blockchain bond has now grown to AU$160 million, which the Commonwealth Bank says will further enable capital markets to leverage distributed ledger technologies for faster, more efficient, and more secure transactions.
“The tap is an important milestone in demonstrating the full lifecycle management of an issuer’s capital markets needs,” said James Wall, Executive General Manager International at Commonwealth Bank.
“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,” added Sophie Gilder, Head of Blockchain & AI, Commonwealth Bank of Australia.
“Next we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance.”
The two-year bond is due in August 2020.
World Bank: ‘Bond-I’ could lead to poverty reduction
The World Bank says the blockchain kangaroo bond is part of a broader to harness the potential of disruptive technologies to benefit World Bank clients.
The World Bank established a blockchain innovation lab in 2017, to explore how developing countries could use blockchain and other disruptive technologies in areas such as land administration, supply chain management, health, education, cross-border payments, and carbon market trading.
“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 digitisation to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals,” said Andrea Dore, World Bank Head of Funding.